Jim Cramer recently shared his thoughts on the current trade tensions between the U.S. and China. He expressed concern about the impact of the new 145% tariff on Chinese imports, calling it “more of an embargo.”
Cramer noted that many U.S. companies rely heavily on cheap Chinese imports. He said, “As a nation, shamefully, we’ve gotten addicted to cheap Chinese imports.”
The high tariff could force companies to cut ties with China.
This could lead to higher domestic costs, increased unemployment, and a shift in trade alliances. “The stakes are enormous,” Cramer said. Despite the challenges, Cramer identified Walmart as a stable investment compared to other retailers.
He placed Walmart among the “big three” retailers alongside Amazon and Costco. “Finally, and most obviously, there are three retailers with the balance sheets to win and to own.
Cramer’s insights on China tariffs
It’s Amazon, Walmart, and Costco,” Cramer remarked. However, Cramer expressed some concern about Walmart’s quarter. He noted that the stock has reflected some decline, partly due to lower income buying rates at Walmart and dollar stores.
Cramer also discussed the resilience of Amazon amidst the trade tensions. He highlighted the potential impact of negotiations between Amazon and Chinese suppliers on the company’s supply chain. “I’m looking to see whether Amazon’s going to go out of stock on some key things because they were made in China and they canceled the purchase order.
I think that they will,” Cramer said. In conclusion, while Walmart remains a strong contender with a robust balance sheet, Cramer suggests looking into AI stocks for potentially higher returns. Nonetheless, Walmart’s position among the top retailers makes it an essential stock to watch.
