Scott Mlyn | CNBC
Otherwise, he said, “The market should be down much more.”
The Dow Jones Industrial Average opened more than 200 points lower on Friday, the last day of a terrible May that saw the Dow sink more than 5.3% as of Thursday’s close.
Cramer said that “markets may be wrong” since traders did not think the president would follow through on threats to hike tariff rates to 25% on $200 billion of Chinese goods.
But earlier this month, he did.
Trump tweeted Thursday evening that he would impose a 5% tariff on Mexican imports, beginning next month, if Mexico does not take action to “reduce or eliminate the number of illegal aliens” crossing into the U.S.
Trump’s new Mexico threat came out of left field and it’s “all kinds of astonishing,” Cramer told “Squawk Alley. ” But if the markets thought the president were really serious, Cramer said he would expect to see General Motors down 15%. In early trading, shares of the automaker were only down about 4%.