Trump Auto Tariffs Effect, Big AI Bets, IPO Watch: Nvidia-CoreWeave Connection 3/27/25

SPEAKER_1 (0:00)

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SPEAKER_2 (1:01)

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David Faber (1:32)

Market insight and analysis. You're listening to the opening bell of CNBC's Squawk on the Street.

Carl Quintanilla (1:38)

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. Futures are trying to hold even as the president announces those 25% tariffs on foreign-made cars and auto parts, waiting for some response from the Europeans. But meantime, yields hit about a one-month high, the curve steepest in about three years. Our roadmap begins with Trump's latest trade target, slapping those tariffs on all cars not made in the US.

David Faber (2:04)

Plus Tesla and tariffs. CEO Elon Musk says the company won't be unscathed and the cost will be, quote, significant. Yeah, we'll talk some Tesla and Related's big AI bet. This is of course known as a big real estate developer, but they are making major investments in data centers.

SPEAKER_2 (2:21)

Interesting. Yeah.

Carl Quintanilla (2:23)

Let's begin with the president implementing those tariffs. He outlined them during his announcement yesterday.

SPEAKER_6 (2:29)

We'll effectively be charging a 25 percent tariff, but if you build your car in the United States there is no tariff. And what that means is a lot of foreign car companies, a lot of companies are going to be in great shape because they've already built their plant, but their plants are underutilized, so they'll be able to expand them inexpensively and quickly. But others will come into our country and build, and they're already looking for sites.

Carl Quintanilla (2:53)

I went on to say, Jim, that he'll add far larger tariffs if, say, the Canadians and the Europeans try to team up to create what he would argue is economic harm to the US.

Jim Cramer (3:03)

Yeah. I mean, look, I think that we have to get back. This is something I was talking about yesterday, you guys, that you didn't get any immunity if you built cars here. And one of the reasons is because the president is convinced that we've become nothing but an assembly plant for expensive overseas cars. So 60 million cars sold here, 8 million.

David Faber (3:22)

16 million.

Jim Cramer (3:23)

Right.

David Faber (3:23)

16

Jim Cramer (3:24)

8 million are from overseas. OK. But the actual cars that are made here, only a small percentage of the expensive stuff, the high value added engines are made here. Those are important. So what you end up is that you could say only 25% of these cars is actually American. And that is a big, big issue. And I think it's, you know, look, I think it's...

Carl Quintanilla (3:52)

By American, you mean 100% American. Components and assembly.

Jim Cramer (3:56)

Exactly. It's just that it doesn't happen here. So when he says that the plants are somewhat empty, I mean, what he's talking about is that all they do is assemble things here. So the German engines are made in Germany. The Japanese engines are made in Japan. And we get them here. It just turns out that you can't rely on the figures that you thought. Because if we're really just in the assembly plan for the expensive parts, well, then we don't really have the business.

David Faber (4:22)

We're already talking about almost 8 million cars that are actually brought over here from other places. So all of those are going to have a 25% tax. Yes, absolutely. The BMW that's made in Germany, the Audi that's made in Germany.