Investors shouldn’t be surprised by Trump’s tariff hikes, Jim Cramer says​on February 4, 2025 at 12:08 am

CNBC’s Jim Cramer unpacked Monday’s market action, saying investors shouldn’t be shocked by President Donald Trump‘s steep tariff hikes, which he promoted during his campaign.

“Stop panicking when Trump does something you think is crazy, and remember that he promised to do most of this stuff before he was elected, and he still won,” Cramer said. “Many might say this is a precarious moment…I simply say you got what your country voted for.”

Stocks saw choppy trading throughout the session as Wall Street reeled at the prospect of a global trade war after Trump levied tariffs against three of the U.S.’s top trading partners — 25% for goods from Canada and Mexico, as well as 10% for those from China. At one point on Monday, the Dow Jones Industrial Average had dipped 1.5%. But by the end of the day, the 30-stock index had recovered somewhat after Trump agreed to pause the tariff increase with Mexico for a month and negotiate further with the country. Trump also announced later in the afternoon that he would do the same for Canada The Dow finished down 0.28%, while the S&P 500 shed 0.76% and the Nasdaq Composite slipped 1.2%.

Cramer said Wall Street needs to realize that Trump intends to follow through on campaign promises, even if they hurt the stock market. The president isn’t focused on conventional inflation, interest rates, the Federal Reserve or even the supermarket, he continued. Instead, Trump is convinced his tariff plan is what will “make America great again,” and he won’t hold back on that agenda, Cramer added, .

Cramer also reviewed other sector action on Monday. He pointed out how companies that offer value meals and consumer products rallied, even as some rely on Mexican imports, like Chipotle, Costco and Walmart. Traders were indifferent to this potential issue because the companies do much of their business domestically, he suggested. Tech also rallied, but Cramer indicated that their action for the rest of the week remains uncertain as Wall Street waits to hear earnings from Alphabet and Amazon.

Investors should be prepared for more bumpy days ahead, he concluded.

“Get used to the turmoil,” Cramer said. “You don’t have to enjoy it, but remember that, in the end, the President sure does.”

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Disclaimer The CNBC Investing Club Charitable Trust holds shares of Costco, Alphabet and Amazon.