Cramer's Morning Take: Auto Tariffs 3/27/25

SPEAKER_1 (0:00)

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Jim Cramer (1:34)

I'm Jim Cramer, and you're about to hear a sample taken directly from today's CNBC Investing Club morning meeting. Now, this is a weird day because what happened yesterday was just a horrendous performance by the NASDAQ and OK by the Dow. And I don't want to get into the prediction game during this 10 minutes, but there's been a nice move off the bottom in the NASDAQ, and a lot of us may have to do with the idea that maybe CoreWeave, which is an IPO that's coming, is going to be downsized, but maybe it'll work. And I know that we shouldn't keep too much on one deal, but it does matter.

David Faber (2:07)

A lot of confusing headlines out there. There was a Cala note that we're going to dig into yesterday that sent a lot of stocks in the data center complex lower. Should that have been the right thing? We'll see. But, you know, looking at the market in general, we did have a big pullback yesterday. The losses accelerated after the president announced tariffs on autos, something you said on our monthly college just a few weeks ago to expect.

Jim Cramer (2:33)

I have been saying for some time that what happens is that there's just two components to foreign cars. Half the cars in this country that are sold are from foreign, but also the cars of the companies where they move the factories here, they tend to be just the low value added, the frames, the high value added, the engines are still made overseas. So there's a lot of belief that these companies have really used us as a dumping ground. It's not something I disagree with at all.

David Faber (3:01)

Sure, but I mean the impacts are significant. According to Morgan Stanley, about 45% of US auto sales are imports. It could raise the price of cars by 11 to 12%. So it's still this general uneasiness ahead of Liberation Day, April 2nd. What tariffs are going to be in place? What's going to be announced? How long will they last? A lot of questions.

Jim Cramer (3:23)

This is the bargain of the devil, the free trade bargain of the devil, which is that we sell out a lot of the workers in our country in return for cheap goods, and the president is trying to reverse that. Having grown up in a family where my father was someone who was very hurt by this, I'm very cognizant of it. But we also got cheap goods and it's very difficult. It's a trade-off.

David Faber (3:44)

Sure. I mean, you could throw another trade-off in there, too, is that they're talking about all this money that they're going to bring in from the tariffs. They want to use that to help offset with potential tax cuts, which would be very good for the markets, very good for companies. So, you know, it's all one big trade-off. We'll see.

Jim Cramer (4:04)

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SPEAKER_5 (4:19)

All opinions expressed by Jim Cramer on this podcast and in connection with the CNBC Investing Club are solely Cramer's opinions and do not reflect the opinions of CNBC, NBC Universal or their parent company or affiliates and may have been previously disseminated by Cramer on television, radio, internet or another medium. No specific outcome or profit is guaranteed in connection with your reliance upon or other use of the content from Cramer. The opinions offered in connection with this podcast and the CNBC Investing Club are not an attempt to induce any particular trading behavior, investment or strategy. You should be aware of the risk of loss and following any strategy or investment discussed in the content from Cramer. To view the full CNBC Investing Club Disclaimer, please visit cnbc.com/investingclubdisclaimer.