Trump's 30% Tariff Threat, White House Intensifies Criticism of Powell, Bitcoin's Record Run 7/14/25

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Carl Quintanilla (1:02)

Market moving insight and analysis. Join Jim Cramer, David Faber and me, Carl Quintanilla, on the opening bell hour of CNBC Squawk on the Street. Good Monday morning. Welcome to Squawk on the Street. I'm Carl Quintanilla with Jim Cramer at post night of the New York Stock Exchange. Faber has the morning off. Futures are red, but off the lows as the street wrestles with a new threat of 30% tariffs on EU and Mexico imports. Big week of inflation data and bank earnings with the long bond near 5% once again today. Our roadmap begins with the president announcing those tariffs beginning next month and threatens to raise them further if those countries retaliate. Big test for the rally as earning season kicks off essentially tomorrow with the banks and then Bitcoin new record highs as crypto week begins on Capitol Hill. Let's begin with this new week for the markets as they digest the president's latest tariff threats. Got some sound from Hassett on that a few moments ago.

Jim Cramer (1:54)

Right. Let's listen up because I think that there's a confusion about whether is this on top of things, particularly with Mexico. I don't know whether he explains it. I don't think he really elucidated it that much.

What worries me is that like, Mexico buys a lot from us. Europe, not so much. We have a big trade, obviously, a trillion dollars in trade there. But what happens if you build a plant in Mexico? You build a Mercedes plant or a BMW plant, two have been built near me in Mexico, and they were, we thought, covered. Are they no longer covered?

Carl Quintanilla (2:31)

You mean under compliance with the URF.?

Jim Cramer (2:32)

Yes, and that's what I want to know, because some of these plants were activated after USMCA, and we all thought that they were covered. And we don't have any clarity about what's covered and what's not.

Carl Quintanilla (2:43)

Right. You're kind of alluding to, I don't know, maybe the page one of The Times today, which talks about our trade policy losing any semblance of organization or structure.

Jim Cramer (2:54)

Exactly.

Carl Quintanilla (2:54)

That's how they put it.

Jim Cramer (2:55)

Yeah, I mean, it's almost like you got to go to someone who's like, you got to FedEx and say, what is it? What are the instructions? If it's coming, if it was made, there's an Allison transmission, really huge plant for GM near me in Mexico. And they, you know, you send your truck down, gets the Allison, goes back, totally covered. USMZ, I mean, brilliant, brilliant deal. Well, Mary Bar's got it. It's great. But somehow are they unwinding that? I mean, what happens? Look, I'm told, like, we report, just a little example, we import Mascot, okay? It's kind of the lifeblood of my wife's company. And we got the exemption, we got to say, listen, you know, you are covered.

SPEAKER_5 (3:37)

That's good.

Jim Cramer (3:38)

Right, but we started the company in a certain year that would be, you know, covered, USMCA. Are we now suddenly taxed? I mean, you know, by the way, you're down there, and here's the answer. And then you go to the American side.

SPEAKER_5 (3:52)

Right.

Jim Cramer (3:53)

So and I think you may, some of me think there's clarity in Washington. There's no clarity where it's where it counts.

Carl Quintanilla (4:00)

Where the rubber meets the road, so to speak. But you have pointed, Jim, in recent days, to shares of Ford as a proxy for how this is going to benefit American market share.

Jim Cramer (4:11)

That's the plan. I mean, the plan is to make it so that not only is China blocked, but everybody's kind of effectively blocked, that you just will not want to buy a like for like from the foreigners. But it's almost as if, in return, we have to start paying the piper with Mexico, and you got to bring that back. But there's been no provisions to say you have to bring it back. So if you're, Farley's worried mostly, I saw this tape of Jim, Jim's worried mostly about warranties. But I think that Jim feels, well, wait a second, we don't sell a lot of cars. They don't buy a lot of our stuff. So hey, listen, we're giving you the Heisman. At the same time, how much, he fortunately makes most of his product in America. So he should be okay. Mary Bar, no. GM makes a huge amount in Mexico.