President Donald Trump has implemented tariffs on Mexico, Canada, and China in retaliation for their alleged role in flooding the US with illegal fentanyl. The 25% tariff on Mexico and a 10% duty on Chinese imports took effect today.
The move is seen as a series of shots across the bow aimed at forcing these countries to change their behavior. Trump has made it clear that he doesn’t care about the market’s reaction, but ultimately, his actions are driven by a desire to see improvement in the US economy and national security.
As a trader, you should sit tight and not panic sell below 2% gains. Instead, look for defensive stocks like Bristol Myers Squibb or Nucor, which could benefit from the new tariffs.
Pharmaceutical companies are set to report earnings this week, with several promising stocks on deck. If you’re looking to buy, consider Apple’s strong recent performance and Nucor’s potential for long-term gains in a world where Chinese steel is tariffed. The CNBC Investing Club will provide trade alerts before Jim Cramer makes any trades.
Note: This article is not intended as investment advice, but rather as general commentary on market trends and the author’s views.
Source: https://www.cnbc.com/2025/02/02/jim-cramer-heres-where-id-look-to-buy-as-wall-street-slides-on-trumps-tariff-orders.html