Jim Cramer: Trump's Tariffs May Not Be 'Meaningful'

CNBC's Jim Cramer believes President Trump's latest round of tariffs may not have staying power and could be used as a starting point for negotiations with countries needing access to US markets. Cramer suggests that the market may remain overbought and that more sellers could emerge if countries refuse to play ball with Trump on trade. He also notes that the tariffs may not impact inflation or the Federal Reserve's decisions on interest rates as much as expected.

CNBC's Jim Cramer believes President Trump's latest round of tariffs may not have staying power and could serve as a starting point for negotiations with countries needing access to U.S. markets. Cramer suggests that the market may remain overbought and that more sellers could emerge if countries refuse to comply with Trump's trade demands. He also notes that the tariffs may not impact inflation or the Federal Reserve's decisions on interest rates as much as expected.

In Monday's CNBC Investing Club meeting, Cramer discussed the potential implications of the new tariffs. He mentioned that the S&P 500's record close on Thursday before the holiday weekend has led to profit-taking, and the market is currently lower as investors await new trade developments. Cramer advised against buying stocks at this moment due to the overbought territory of the S&P Short Range Oscillator [1].

Cramer also commented on the downgrade of CrowdStrike to a hold-equivalent neutral rating by Piper Sandler, citing the company's high valuation and lack of near-term catalysts [1]. Additionally, he highlighted Citigroup's raised price target on Nvidia, projecting an expansion of their artificial intelligence total addressable market (TAM) forecasts to $563 billion in 2028 [1].

The U.S. and EU are currently in trade talks, with President Trump considering imposing tariffs on European goods. The EU is prepared to retaliate with tariffs on American products if a deal isn't reached. The trade between the U.S. and the EU is enormous, with the value of EU-U.S. trade in goods and services amounting to 1.7 trillion euros ($2 trillion) in 2024 [2]. Economists warn that higher tariffs will mean higher prices for U.S. consumers on imported goods, and some companies may decide to shift production stateside to avoid tariffs.

Cramer's analysis suggests that the market may remain volatile due to the ongoing trade negotiations and the potential for increased tariffs. Investors should remain vigilant and consider the implications of these developments on their portfolios.

References:
[1] https://www.cnbc.com/2025/07/07/why-jim-cramer-says-nvidia-may-score-a-win-in-china-plus-crowdstrike-gets-downgraded.html
[2] https://economictimes.indiatimes.com/news/international/business/us-tariffs-on-european-goods-threaten-to-shake-up-the-worlds-largest-2-way-trade-relationship/articleshow/122279188.cms