Tags: Trump Administration | jim cramer | trump | cohn | investors | tariffs | trade

Jim Cramer: Trump Must Tweak Tariffs to Calm Street Over Losing Cohn

(mandel Ngan/Getty Images)

Tuesday, 06 March 2018 08:36 PM

Economic guru Jim Cramer says Wall Street is paralyzed in fear after Gary Cohn resigned President Donald Trump’s top economic adviser as the administration prepares to impose steep tariffs on steel and aluminum that Cohn has opposed.

The president’s announcement on Thursday that he would press forward with a 25 percent tariff on steel imports and 10 percent on aluminum left markets reeling and served as a public rebuke of Cohn, the director of the National Economic Council, who had furiously lobbied against the penalties.

One person with knowledge of the chaotic West Wing decision-making process said Cohn and Commerce Secretary Wilbur Ross, who had recommended the tariffs to the president, privately argued over the issue just hours before it was announced, Bloomberg reported.

The tariffs appeared to mark the tipping point for Cohn, 57, a registered Democrat who made clear that he saw his job in the administration to be an advocate for business-friendly economic principles. He helped Trump steer a large package of tax cuts into law last year but proved unpersuasive on trade, where Cohn was a stark counterpoint to nationalists and economic populists in the administration led by former chief strategist Stephen Bannon.

Cramer explained on CNBC that while Cohn's resignation is certainly a big blow to the market, stocks could return to strong growth if Trump's proposed tariffs exempted America’s NAFTA trading partners Canada and Mexico.

"I believe a more focused tariff that excludes Canada and Mexico, at the very least, would create a wave of jubilation that would cause a return to our regularly scheduled programming of strong growth with tame inflation," Cramer said on his "Mad Money" show.

Cramer said the real issue is with the Chinese government, which produces about 55 percent of the world's aluminum.

"First, I think people would buy the defense stocks hand over first, the ones that investors think would be hurt the most by across the board tariffs," Cramer said.

"I bet some of the most beleaguered international stocks of late, the Boeings and the Caterpillars, have a relief rally and United Rentals, a huge buyer of capital equipment, takes out its all-time high," he added.

Cramer said the stocks that would benefit the most are "whatever is working best right now before we got the reprieve," Cramer explained. "That means Netflix and Amazon which are on insane runs as they extend their worldwide dominance. That means Alphabet, which does no business in China anyway, can continue to scream higher as it has been for the last few days."

(Newsmax wire services contributed to this report).

© 2018 Newsmax Finance. All rights reserved.

   
1Like our page
2Share
StreetTalk
Economic guru Jim Cramer says Wall Street is paralyzed in fear after Gary Cohn resigned President Donald Trump's top economic adviser as the administration prepares to impose steep tariffs on steel and aluminum that Cohn has opposed.
jim cramer, trump, cohn, investors, tariffs, trade
429
2018-36-06
Tuesday, 06 March 2018 08:36 PM
Newsmax Media, Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved