Tariff uncertainty is weighing on market action, Jim Cramer says

CNBC’s Jim Cramer suggested uncertainty over tariff policies will continue to shape market action, saying stocks retreated on Wednesday after President Donald Trump discussed the matter at a cabinet meeting.

“I can tell you that we’re entering a new, more mercurial world, where we have to start worrying about the president’s public appearances, because we don’t know which country, which continent, which ally he is going to attack next,” Cramer said.

The indexes dropped from their highs throughout Wednesday’s session, but the S&P 500 managed to eke out a 0.01% gain, ending a four-day streak of losses. The Dow Jones Industrial Average dipped 0.43% while the Nasdaq Composite closed up 0.26%.

During his first official cabinet meeting on Wednesday, Trump threatened to impose 25% tariffs on countries in the European Union. An unclear timeline for tariffs broadly has further stirred confusion.

Apple finished the day down 2.70%, and Cramer attributed the decline to tariff fears, as the company manufactures a lot of products for iPhones in China. He said it’s hard to own Apple because of the president’s “somewhat arbitrary nature” that leaves open the possibility of tariffs on Taiwan or more on China, which could hurt the company’s profit margin.

“The only certainty that American manufacturers have had for decades is the certainty of facing unfair tariffs and other barriers from our trading partners – regardless of country or continent, friend or foe,” White House spokesperson Kush Desai told CNBC.

Tariff discourse is “so pervasive, so overwhelming, so in your face,” Cramer suggested, that investors are sidelining themes that had once loomed large, namely movement in the bond market. Treasurys have slumped, with the 10-year yield falling to its lowest level since December. According to Cramer, this kind of action might have been enough to send the market to new all-time highs. But now, Wall Street fears Trump’s tariff policies will seriously damage the economy, he said.

“This market’s decided that, as much as it matters if there’s good news, like Nvidia, what matters more is that we have very little certainty on trade policy, aside from the fact that the president loves tariffs as much as he loves making headlines,” Cramer said.

Sign up now for the CNBC Investing Club to follow Jim Cramer’s every move in the market.

Disclaimer The CNBC Investing Club Charitable Trust holds shares of Apple and Nvidia.