People are saying that American companies that didn’t reduce their China exposure after months and months of watching Washington and Beijing clash on trade have only themselves to blame, CNBC’s Jim Cramer reported on Tuesday.
“I’m also told that they are like, ‘Are you kidding me, you had a full year to move out of China. If you didn’t move out of China now, it’s your own fault,'” Cramer said on “Squawk on the Street. “
“My people I talk to said two numbers determine everything, 3.2% GDP and 3.6% unemployment. That’s when things changed. In other words, the Chinese played a little tougher but they overplayed their hand is what my people say. They overplayed their hand given the numbers of what we have” on the economy in the United States, Cramer said.
“I am saying 12:01 Friday will be different,” added the “Mad Money” host, referring to the midnight deadline later this week that President Donald Trump set for increases in China tariffs from 10% to 25% if trade talks don’t make progress.
Cramer pointed out the continued weakness in Dow stocks that would be most-impacted by an escalation in the trade war, including Caterpillar and Boeing. Apple, which was higher Monday, was lower Tuesday.
“So who’s hurting the Dow?” asked Cramer. “Boeing, but they have a lot of orders. Caterpillar, they didn’t move out fast enough. Apple, who knows what they’re game is.”