Cramer Calls Trump's China Tariff an Embargo in Disguise

Thursday 10th of April 2025 22:41:33

Trump's new tariff on China is more of an embargo, Jim Cramer says

CNBC's Jim Cramer said on Friday that President Donald Trump's new 25% tariff on $50 billion worth of Chinese goods is more like an embargo than a traditional tariff.

"I think it's an embargo, not a tariff," Cramer said on "Squawk Box." "It's a way to stop the flow of goods, to stop the flow of money. It's a way to say, 'We're not going to let you in, China.'"

Cramer's comments come as the Trump administration announced the new tariffs on Thursday, targeting a range of Chinese goods including electronics, machinery and automobiles. The move is the latest in a long-running trade dispute between the two countries.

The new tariffs are set to take effect on June 24, and will apply to a range of Chinese goods, including:

  • Electronics, such as smartphones and laptops
  • Machinery, such as industrial robots and textile machinery
  • Automobiles, including cars and trucks
  • Aerospace products, such as aircraft and spacecraft
  • Chemicals, including pharmaceuticals and fertilizers

Cramer said that the new tariffs are a major escalation of the trade dispute, and could have significant implications for the U.S. economy.

"This is a big deal," Cramer said. "This is a major, major escalation. This is not just a tariff, this is a way to stop the flow of goods. It's a way to say, 'We're not going to let you in, China.'"

Cramer also noted that the new tariffs could have significant implications for U.S. companies that rely on Chinese goods, including companies that manufacture products that contain Chinese components.

"This is a big deal for companies that use Chinese components," Cramer said. "This is a big deal for companies that manufacture products that contain Chinese components. This is a big deal for the entire U.S. economy."

The Trump administration has said that the new tariffs are necessary to protect U.S. intellectual property and to address what it sees as unfair trade practices by China. China has vowed to retaliate against the new tariffs, and the move has sparked concerns about the potential impact on the global economy.