Market Sell-Off: Stocks Slammed on Trump Tariff Announcement 4/3/25

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Jim Cramer (1:29)

It's Jim Cramer here. You're listening to the opening bell of CNBC's Squawk on the Street. Don't miss a minute of the action.

Carl Quintanilla (1:36)

Good Thursday morning. Welcome to Squawk on the Street. I'm Carl Quintanilla with Jim Cramer, David Faber at Post 9 of the New York Stock Exchange. Global sell-off now in motion as markets respond to this White House tariff announcement. S&P looks to revisit those September lows. And we're watching for countermeasures, a possible free handle this morning on the tenure. We'll see. Let's begin, of course, with the global market sell-off a day after the president's announcement, calling for a new 10% across-the-board levy on all imported goods, along with higher tariffs at varying levels for about 60 countries. Here is the president explaining his decision in the Rose Garden yesterday.

SPEAKER_5 (2:12)

In the face of unrelenting economic warfare, the United States can no longer continue with a policy of unilateral economic surrender. We can not pay the deficits of Canada, Mexico and so many other countries.

Carl Quintanilla (2:27)

Jim, walk us through your mindset today.

Jim Cramer (2:28)

Okay, well, I think that the market is going to... There's always money goes somewhere.

I think the money is going to go heavily to the American electric powers, the energies, utilities, to the companies that have pricing power, like a Procter, J&J, and will flee the areas where it's so hard for companies to get out of areas. And I'm looking at... So I don't want to be too pejorative here. There's the Luckless and the Lucky. And the Luckless are companies that moved from China to Vietnam, China to Thailand, China to other areas where they thought they were allowed to go to, Mexico. And the poster boy there is indeed Nike. I don't want to be so trite as to say Nike as we see it. But David, there are some companies that are not in the crosshairs that are going down. And there are some companies that are in the crosshairs that are going up. So we've got a lot of mistaken trading right now.

David Faber (3:24)

Mistaken trading?

Jim Cramer (3:25)

Well, people are making a bet that it's like that Amazon is really hurt by this because of world trade. I mean, Amazon is pricing power. You want to figure out who is pricing power. They are winners.

Sara Eisen (3:35)

Right.

Jim Cramer (3:36)

And I don't know. Does Nike have pricing power? I don't even know. Amazon and Walmart.

David Faber (3:42)

Your point is the retailers can take, make the people who put stuff on their shelves or their digital shelves take the hit, or at least a lot of it.

Jim Cramer (3:52)

But does Best Buy have that? No. Does Foot Locker have it? I don't think so. But Costco has it.

David Faber (3:57)

We're looking at some of the big losers right now. Applovin is in there for a different reason. Lululemon obviously is there because they sourced so much of their product from Vietnam.

Jim Cramer (4:08)

Right. And that was luckless.

David Faber (4:11)

Yeah.

Sara Eisen (4:12)

Well, that was luckless.

David Faber (4:13)

I mean, stepping back for a moment, I think coming in to yesterday, the expectation was not that Vietnam would face a 45 percent tariff.