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Jim Cramer says a 20% tariff on most imports would be 'horrendous' for the economy

1. Cramer warns about potential 20% tariffs on U.S. imports. 2. Tariffs could harm the economy, following historic precedents. 3. Concerns raised over manufacturing and inflation impact. 4. Trade disputes with Canada could escalate, affecting housing prices. 5. Cramer believes voters prioritize lower prices over tariff protections.

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FAQ

Why Bearish?

The proposed tariffs could lead to inflation and slow economic growth, negatively impacting S&P 500 sectors reliant on consumer spending, similar to past tariff impacts like Smoot-Hawley.

How important is it?

The focus on tariffs directly influences market expectations, impacting investor sentiment and S&P 500 performance.

Why Short Term?

The market may react quickly to tariff announcements and their immediate economic implications, as historically seen during tariff introductions.

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