Squawk on the Street Cramer's Morning Take: Auto Tariffs 3/27/25
Mar 27, 2025
The discussion dives into the recent auto tariffs and how they are shaking up the market. Cramer highlights the NASDAQ's struggles compared to the Dow's stability, hinting at investment opportunities, especially with an upcoming IPO. The complexities of the tariffs are unpacked, revealing potential car price hikes and the tug-of-war between protecting U.S. jobs and keeping consumer prices low. There's also a look at how tariff revenues could influence tax cuts, making for a thought-provoking dialogue on economic strategies.
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Auto Industry Practices
- Many foreign car companies use the US as a dumping ground for low-value car parts.
- They manufacture high-value parts like engines overseas.
Impact of Tariffs
- About 45% of US auto sales are imports, according to Morgan Stanley.
- New tariffs could raise car prices by 11-12%.
Free Trade's Downside
- Jim Cramer's father was hurt by free trade deals that sold out American workers.
- Cramer is cognizant of the trade-off between cheap goods and worker displacement.