Cramer's Morning Take: Tariff Impact 4/7/25

SPEAKER_1 (0:00)

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Jim Cramer (1:31)

Jim Cramer here to share with you a sample of my take on the market from today's CNBC Investing Club morning meeting. We were right not to panic and sell, as we said over the weekend. We want to see what's happening. It is very early. We know that the S&P could fall more because we know that earnings are at risk. However, the notion of the get out now, so to speak, to sell, once again wrong.

I have no inclinations to trade here unless you're seeing something you think is an opportunity.

Jeff Marks (2:01)

Well, look, markets are moving fast. There was this comment by Kevin Hassett that Trump is considering a 90-day pause on tariffs in all countries except for China. Very different from the story we heard from Peter Navarro on the network earlier, where he's saying that even these possible negotiations where Vietnam wants to lower tariffs rates to zero, that's not his goal. So there's a lot of confliction within the White House. You have to wonder who's going to win, who's going to get in the president's ear last and the loudest. So things are moving fast, but a very fluid situation.

Jim Cramer (2:42)

Right. Now, look, we're not scalpers, okay? And I spent a lot of time, obviously, in the piece this weekend saying what could happen. And I'm not bullish by any means, all right? I just think that you have to look at what of the six bear markets we've had, which in the time since I've been going, which are the most resonant. And I think that the one you want to take off the table is 2007, because they're very different. Yeah, the institutions didn't hold. If this is more like the others, then if you buy at the bottom, and I don't think this is necessarily the bottom, but if you buy at the bottom, you do well, but you should never have sold, because you couldn't get back in. And even just the microcosm today, it was so tempting to say, listen, I think you ought to get out. And you would have sold everything, look at this, down 6% from where it is. It's so fluid.

Jeff Marks (3:31)

Well, yes, and I think the one thing you have to keep in mind is that, as we've been saying, it's a manufactured sell-off. They can always pull the towers back. That's really, it's the game theory happening right now, is, will the administration blink? You know, I would even say today, even when the futures were kind of coming off their worst levels before this news came out, it would have only down 1% to 2% in the S&P, would that have emboldened the administration to double down? So again, things moving fast here. But you know, at the same time, I think it is fair, you have to be concerned about a recession, you have Goldman raise its recession odds to 45% in the next 12 months. Now, an S&P down 20% from its high, when we were looking at it down 3%, beginning to price some of that in. But you know, look, at the end of the day, you know, kind of what you said last night, not looking to sell, not necessarily looking to aggressively buy either.

Jim Cramer (4:31)

Because we can't trade that fast. But similarly, like let's say you did want to buy something, well, you might probably want to flip it now. And that's not our game either.