Jim Cramer Says Trump Following “Perfect” Formula for Market Collapse
CNBC’s Jim Cramer issued a stark warning Friday morning, declaring that President Donald Trump’s trade policies appear to be a blueprint for triggering a market crash. The veteran financial commentator made his unusually blunt assessment moments before markets opened to another punishing session, with the S&P 500 plummeting 3% at the opening bell, building on Thursday’s 4.8% selloff.
“I struggle for what the president’s game plan is because if you wanted to make the market crash, I think you would go with this game plan,” Cramer stated on CNBC’s “Squawk on the Street” program. His comments came shortly after China announced retaliatory tariffs against U.S. imports, escalating trade tensions that have roiled global markets since Trump’s sweeping tariff announcement Wednesday evening.
The beleaguered market has now lost over $3 trillion in value across just two trading sessions, according to market data, with major tech companies bearing the brunt of the selloff. According to Mediaite, Cramer’s use of the word “crash” – typically avoided in financial television – underscores the severity of the situation unfolding on Wall Street.
Historical Comparisons Raise Alarm
During the broadcast, Cramer drew parallels to previous market collapses, referencing his correct calls in advance of the 1987 and 2007 market crashes. “I was cash for the crash. I obviously said in 2007 that they knew nothing. That was a good call,” Cramer noted, adding ominously, “I don’t want this to be that call.”
When co-host Carl Quintanilla pointed out the rarity of using the term “crash” on financial programming, Cramer doubled down, warning investors against trying to find bargains too early. “If you bottom-fished Thursday and if you bottom-fished Friday in 1987, you slept with the fishes on Monday,” he cautioned, using mob movie terminology to emphasize the danger.
The market’s reaction appeared to validate Cramer’s concerns. According to CNBC, equity futures had already crashed overnight following China’s announcement of reciprocal tariffs, with the Dow Jones Industrial Average opening down nearly 1,000 points Friday morning – marking potentially the worst two-day decline since the early pandemic days of 2020.
CNBC's Jim Cramer Throws Around C-Word As Trump Stock Crisis Deepens — Says Slide Is Headed For 'Crash' https://t.co/d91raAjceI
— Mediaite (@Mediaite) April 4, 2025
Questioning Administration Strategy
Cramer expressed frustration with what he characterized as the administration’s insensitive handling of market concerns, questioning why Trump’s economic advisors weren’t advocating for a more measured approach. “There’s plenty of opportunity for the president to say, ‘You know, I’ve been thinking… We’ll do the TikTok deal. We’ll avoid this. Here’s the cure path,'” Cramer suggested.
He specifically called out Trump advisors including Peter Navarro and Commerce Secretary Howard Lutnick, asking why they weren’t providing guidance to moderate the policies. “It should not be in our country’s interest to have the market crash,” Cramer emphasized, breaking with his typically more measured commentary.
Despite his dire assessment, Cramer clarified he wasn’t advising investors to exit the market completely. “I’m going to hold. We’ve sold enough stuff for my Charitable Trust,” he said, referring to the portfolio used by his CNBC Investing Club. “But I can’t bottom fish. I don’t want to sleep with the fishes.”
White House Doubles Down
As market concerns intensified, Trump appeared unbowed by the financial turmoil. In a social media post Friday following China’s retaliation, the president vowed that his policies would “never change,” further stoking uncertainty about the future direction of trade policy.
The administration’s stance has left Cramer and other market commentators struggling to find reasons for optimism. “I can’t think of a single reason in the world to buy a stock,” Cramer declared in an unusually bearish sentiment that reflects growing concern about both the short and medium-term market outlook.
With trading partners continuing to announce countermeasures and the administration showing no signs of backing down, investors face an increasingly uncertain landscape heading into the weekend. As of publication, the White House had not responded to requests for comment on Cramer’s remarks.
