Some US companies "got hurt" by customs because they assumed that President Donald Trump would not go along with his Chinese trading threats. CNBC's Jim Cramer said Thursday.
"They didn't think Trump had the determination," said Cramer on "Squawk Box". It turned out to be wrong, he said, but added that some negative effects of the US-China trade war are inevitable.
Cramer praised Cisco Systems after the US network equipment manufacturer said Wednesday that it had reduced its manufacturing in China pending increased tariffs by the Trump administration.
Cisco chairman and chief executive Chuck Robbins told Cramer on "Mad Money" Wednesday night that the current rate cut for the company is "relatively insignificant at this time and built into our guidance."
But Cisco's CFO, Kelly Kramer, who sat next to Robbins, said if the Trump administration were to impose duties on the rest of China's imports, it would not only I mpact Cisco but "every industry out there."
These tariff insurances and better than expected financial results for the third quarter late Wednesday increased Dow-stock Cisco more than 5% early Thursday. This, together with better-than-expected results from Walmart, another component of the average and a similar stock shift higher for the retailer at the beginning of Thursday, contributed to increasing the market openly.
If the Dow Jones Industrial Average, S & P 500 and Nasdaq were to close higher Thursday, it would be a three-day winning strike and perhaps a break in the negative sense of trading headlines earlier this week.
Last week's trump management increased $ 200 billion in Chinese products from 1
Cramer has expressed support for Trump's harder attitude towards China, but has also called on investors to upload names that tolerate higher tariffs.
He reported last week that people said that US companies that did not reduce their Chinese exposure after months and months of watching the Washington and Beijing conflict on trade have only to blame.
"I am also prepared that they are like," Are you kidding me, you had a whole year to move out of China. If you didn't move out of China now, it's your own fault, "Cramer said at that time.