The stock market has undergone a high sale on Wednesday after President Donald Trump announced new rates ranging from 10% to 49% on goods imported from more than 180 countries and territories.
The scanning has sent shock waves through Wall Street, with technological actions, semiconductor companies and major exporters bearing the weight of investor fears.
The veteran analyst of the Jim Cramer market, speaking on CNBC, has carried out an blunt evaluation of the situation, arguing that Trump’s priority is to punish American trade partners, and not to stabilize markets or ensure the confidence of investors.
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“In the end, I think we looked at this unhappy president,” said Cramer. “This president turns out to be a hateful hate of an equal opportunity. He does not care what these countries do. In the end, he thinks they can’t really hurt us. Why? Because they don’t buy our business anyway.”
Cramer suggested that investors had to recognize that Trump is willing to disturb everything – including Wall Street – in his pursuit of what he calls “fair trade”.
The technological sector was the hardest after the announcement. Apple, which relies heavily on manufacturing in China and other Asian countries, has slipped more than 6% in late, resulting in a wider drop in technological companies. Nvidia, which produces its semiconductive chips put forward in Taiwan and assembles AI systems in Mexico, fell by 4%, while Tesla, which has world supply chains covering China and Germany, fell by 4.5%.
Other important technological actions, including Alphabet, Amazon and Meta, decreased between 2.5% and 5%, reflecting wider fears concerning the increase in production costs and the disturbances of the supply chain. Microsoft, which manufactures material components in China, has also dropped by almost 2%.
The reaction of the stock market has been rapid and severe. The S&P 500 ended by 2.3%, while the industrial average of Dow Jones fell 680 points, marking its biggest decrease of one day since October 2023.
Cramer, recognizing the panic of the market, said that like everyone else, he wants to clarify the end of Trump’s prices. But for the moment, investors must accept that prices will increase and that the results of companies will be injured.
“He is not trying to make investors happy. He is not a question of happiness for us,” said Cramer. “It consists in ensuring that these countries look at its will, and if it causes inflation, then it causes inflation.”
Trump, speaking during a Garden Rose Garden of the White House, described as a “liberation day”, rejected concerns concerning market disorders and defended his measurement decision necessary to correct decades of commercial imbalances.
“It is one of the most important days in American history,” said Trump. “We will overcome our national industrial base, we will open foreign markets will open and decompose the barriers of foreign trade.”
The reciprocal tariff policy of its administration applies to more than 50 countries, including major economic powers such as China, European Union, India and Japan, as well as several developing economies across Africa, Asia and Latin America. In this context, the United States imposes rights on imports equivalent to half of the prices that these countries apply to American exports.
This decision has aroused immediate conviction of American trade partners, which already promises to retaliate. China has threatened new prices on American agricultural and technological exports, degenerating the trade war between the two superpowers. The European Union has described Trump’s “economic sabotage” and prepares countermeasures against key exports in the United States. Canada has rejected the assertion that its prices on American goods are unfair, warning that reprisal tasks will be imposed in a few weeks. Japan and South Korea, both main exporters in the United States, are also considering Washington’s Washington’s action.
For American companies, uncertainty creates serious risks. Many multinational companies are based on manufacturing abroad and now facing steep prices that could erode profits. Apple, which assembles most of its iPhones and MacBooks in China, may have to increase prices or move its supply chain – an expensive and long process.
Motor manufacturers such as Tesla and Ford, which import critical components from Europe, Asia and Mexico, are faced with higher production costs that could be transmitted to consumers or lead to thinner margins. Retailers like Walmart and Target, which import massive quantities of consumer goods, may have to increase prices on everything, from clothing to electronics.
Cramer advised investors to focus on national oriented companies which are less exposed to disruption of international trade. Companies aimed at small and medium-sized businesses in the United States can be better isolated from the benefits. However, he warned that inflation is now a major concern, because the increase in tariff costs will eventually strike American consumers.
He concluded with a warning that gives reflection: “Price increases, the benefits of companies drop and the supply chains are about to become more complicated.”
For those who hope that Trump will change the course to protect the stock market, Cramer suggested that they forget it. Trump doubling his protectionist trade policies, the markets are preparing for more volatility and investors may need to prepare for an extended period of slowdown in the market.
