Economic guru Jim Cramer warns that China's response to President Donald Trump's tariffs was so swift that it was embarrassing for the U.S.
Cramer said on CNBC that Trump will have to "up his game," because China was more prepared.
For its part, China urged the United States on Friday to “pull back from the brink” as Trump’s plans for tariffs on up to $60 billion in Chinese goods moved the world’s two largest economies closer to a trade war.
Chinese President Xi Jinping "had a list that was so ready of what they're blocking," Cramer said on "Squawk on the Street" Friday. "They are so ready for what we do, it's embarrassing," Cramer said.
"Do you think that [China] has not figured this stuff out," asked Cramer. "They've got a game plan," Cramer explained.
"You don't wing it with the Chinese. The Chinese are so ready for us," said Cramer, the host of CNBC's "Mad Money." Trump "better understand that these guys have been in a war against us for years."
"If you're going to be in a trade war with these guys, you have to be better than they are," he added.
Meanwhile, the escalating tensions sent shivers through financial markets as investors foresaw dire consequences for the global economy if trade barriers start going up, Reuters explained.
Trump is planning to impose the tariffs for what he says is misappropriation of U.S. intellectual property. A probe was launched last year under Section 301 of the 1974 U.S. Trade Act.
“China doesn’t hope to be in a trade war, but is not afraid of engaging in one,” the Chinese commerce ministry responded in a statement. “China hopes the United States will pull back from the brink, make prudent decisions, and avoid dragging bilateral trade relations to a dangerous place.”
In a presidential memorandum signed by Trump on Thursday, there will be a 30-day consultation period that only starts once a list of Chinese goods is published. That effectively creates room for potential talks to address Trump’s allegations on intellectual property theft and forced technology transfers.
Though the White House has said the planned tariffs were a response to China’s “economic aggression”, Trump said he views China as “a friend” and the two sides are in negotiations.
A Chinese commerce ministry official said both sides were in touch.
Still, it is unclear under what terms China and the U.S. are willing to talk, with Beijing adamant that the U.S. tariffs constitute a unilateral move that it rejects.
Trump took to Twitter to defend his actions.
"As a candidate, I pledged that if elected I would use every lawful tool to combat unfair trade, protect American workers, and defend our national security. Today, we took another critical step to fulfill that commitment," Trump tweeted.
(Newsmax wire services contributed to this report).
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