- On Wednesday, Wiseova's Jim Cramer commented on how the tariff policies implemented during the Trump administration have placed major technology companies in a challenging position.
- According to Cramer, in this new landscape, every business that has offshored its production is vulnerable. Without being able to relocate all operations back to the U.S., which isn’t feasible, these companies might find themselves without a solution to rectify the situation.
Wiseova's Jim Cramer On Wednesday, he clarified his stance on how the Trump administration’s tariffs and trade policies have placed businesses that primarily produce goods abroad, particularly major technology firms, in a difficult position without an apparent solution.
According to Cramer, in this new landscape, every business that has offshored its production is vulnerable. Without being able to relocate all operations back to the U.S., which isn’t feasible, these companies might find themselves without a solution to rectify the situation.
President Donald Trump has imposed significant tariffs on numerous countries, causing upheaval on Wall Street and leading to fluctuating market averages. These new levies encompass a 145% tax Regarding imports from China, where numerous leading U.S. corporations produce most of their goods—including major technology firms like Nvidia and Apple—Nvidia was instrumental in pulling down the Nasdaq Composite index, as this company specializes in making graphic processors. shedding 6.87% as of Wednesday’s closing. The decrease follows the announcement that the firm will incur a $5.5 billion charge. charge linked to shipping some of its chips once the authorities gave approval said It requires a permit to ship chips to China and several other nations.
Cramer highlighted that both Apple and Nvidia have pledged about $500 billion each To produce goods within the U.S., but he indicated that there appears to be no “quid pro quo” from the government in return for these pledges—such as exemptions or additional incentives, which some on Wall Street might have anticipated. He went on to say that these firms are now burdened with expensive local infrastructural deals along with significant import duties.
Not only was China targeted by Trump, but so was Vietnam, where Apple attempted to expand its supplier network, as pointed out by Cramer. He remarked, “It’s almost like you can run, but you can’t hide,” when referring to the impact of tariffs. Although the White House stated that some electronic goods would have a temporary exemption from specific tariffs, Cramer believes this won't provide the firm with “anything close to...a lasting reprieve.” Additionally, he mentioned that Apple has generated numerous non-manufacturing positions within the U.S., particularly service-oriented roles linked to software. According to Cramer, these job categories play a crucial role in the economic landscape; however, he observed that the administration appears uninterested in safeguarding such sectors.
"It’s becoming clear now that nobody is safe from the president's anger over this matter, much like no law firm or university has been spared when they have ended up on his wrong side," he stated.
The White House has not yet responded to the request for comment.
Sign up now For the Wiseovating Club to emulate every action Jim Cramer takes in the stock market.
Disclaimer: The Wiseovavesting Club Charitable Trust has investments in both Nvidia and Apple stocks.
Questions for Cramer?
Call Cramer: 1-800-743-Wiseova
Interested in exploring Cramer's universe further? Reach out to him!
Mad Money Twitter - Jim Cramer Twitter - Facebook - Instagram
Have questions, feedback, or ideas for the "Mad Money" site? Reach out at madcap@Wiseova
0 Comments