On Thursday, Jim Cramer, host of Mad Money, described the 145% duty on China as so extreme that it essentially acts as an embargo rather than a conventional tariff.
“We now have 145% tariff on Chinese goods. Now, a number that high frankly isn’t really a tariff. It’s more of an embargo. Almost nobody’s gonna pay that much of a markup. It’s a recipe for losing money.”
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Cramer said that he believes Trump is more frustrated with prior administrations for what he sees as allowing China to take advantage of U.S. trade policy than he is with President Xi Jinping himself, who Trump continues to speak of respectfully. While Cramer acknowledged that he sympathizes with Trump’s objective, he warned that the country is not prepared to handle the fallout. “As a nation, shamefully, we’ve gotten addicted to cheap Chinese imports,” he said
“I think what we saw today was the beginning of a sorting period between those that have no China exposure and those that do. Unfortunately, those that do employ a lot of people and are excellent companies, but they may not be excellent enough to make it through this new environment and that is a real shame.”
Cramer emphasized that while he believes the U.S. can function without economic ties to China, doing so would significantly raise domestic costs, drive up unemployment, and force reliance on other global partners. The stakes, he said, are enormous. “Yes, we have to take them on now or never,” he stated, but he cautioned that the consequences will involve more pain than the public is likely prepared to accept.
“So the bottom line: Is it worth it? Depends. I think it’s worth some temporary pain to drive a hard bargain though and get a more favorable trade deal out of the Chinese government. But it’s not worth it to go back… [from] $439 billion in imports to zero. Unfortunately, I’m actually thinking that might be where we’re headed.”
Our Methodology
For this article, we compiled a list of 12 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on April 10. We listed the stocks in the order that Cramer mentioned them. We also provided hedge fund sentiment for each stock as of the fourth quarter of 2024, which was taken from Insider Monkey’s database of over 1,000 hedge funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Jim Cramer Discussed These 12 Stocks
12. Costco Wholesale Corporation (NASDAQ:COST)
Number of Hedge Fund Holders: 96
Cramer noted that Costco Wholesale Corporation (NASDAQ:COST) has a “balance sheet to win” as he said:
“Finally, and most obviously, there are three retailers with the balance sheets to win and to own. It’s Amazon, Walmart, and Costco. Take a look around at all the other retailers. They could be in their death rows, death by withdrawal. With the exception of the two big box hardware stores, I don’t know how they can make it if they’re up against those big three.”
Costco (NASDAQ:COST) operates on a membership-only warehouse system. It offers both name-brand and private-label items in large quantities at reduced prices. Aoris Investment Management stated the following regarding the company in its Q4 2024 investor letter:
“Firstly, I think we exercised good valuation discipline in our sales of Costco Wholesale Corporation (NASDAQ:COST) and Cintas. The share prices of these two companies had increased by more than 60% and 40% respectively in the year prior to our sale. It can be difficult as investors to remain objective and not ‘fall in love’ with an investment when it is performing well. A higher share price doesn’t make a business more valuable!
We sold both Costco and Cintas simply for reasons of valuation. These are exceptional businesses that we’d love to own again if valuation permits. Their sales allowed us to recycle portfolio capital into more attractively valued businesses.”
11. Walmart Inc. (NYSE:WMT)
Number of Hedge Fund Holders: 116
Cramer mentioned that Walmart Inc. (NYSE:WMT) is among the “big three” retailers as he remarked:
“Finally, and most obviously, there are three retailers with the balance sheets to win and to own. It’s Amazon, Walmart, and Costco. Take a look around at all the other retailers. They could be in their death rows, death by withdrawal. With the exception of the two big box hardware stores, I don’t know how they can make it if they’re up against those big three.”
Walmart (NYSE:WMT) is a retail company that sells a broad selection of products, including food, health-related items, electronics, apparel, and its own store brands. Appearing on Squawk on the Street in March, Cramer said:
“[On MS commenting that lower income buying rates at Walmart, Dollar General going down] They are are going down. I am concerned about Walmart’s quarter. But the stock has reflected some decline. I am concerned about people who go to the dollar stores. Because when you look at the average. . .you don’t end up being as a good a bargain as you may think. That’s been my experience. Was the Dollar Tree stores do not represent. . . by the way, Family Dollar, jeez you know for years they told me it was good.”
10. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 339
Amazon.com, Inc. (NASDAQ:AMZN) was mentioned during the episode, and here’s what Mad Money’s host had to say:
“Finally, and most obviously, there are three retailers with the balance sheets to win and to own. It’s Amazon, Walmart, and Costco. Take a look around at all the other retailers. They could be in their death rows, death by withdrawal. With the exception of the two big box hardware stores, I don’t know how they can make it if they’re up against those big three.”
Amazon (NASDAQ:AMZN) provides a wide range of services, including online retail, subscription programs, and advertising solutions. On Monday, Cramer commented:
“But I do believe right now there’s negotiations, let’s say with Amazon. Amazon has a lot of stuff that is made, that’s branded, and I don’t think that stuff’s coming here. I think that stuff’s frozen until they come up with negotiations. […] You’re Amazon, you want to screw the Chinese, the Chinese want to screw you. The only thing you can do is have some sort of meeting of the minds and someone has to pay. […] I’m looking to see whether Amazon’s going to go out of stock on some key things because they were made in China and they cancelled the purchase order. I think that they will.”
9. The TJX Companies, Inc. (NYSE:TJX)
Number of Hedge Fund Holders: 74
Coming to The TJX Companies, Inc. (NYSE:TJX), Cramer commented:
“The best, you know what’s the best? TJX. A ton of retailers will have to order a lot of inventory to be able to get through the holidays, too much inventory, and they’ll then have to offload their unsold merchandise to TJX. There is a reason this stock keeps finding itself on the new all-time high list, other than the fact that I’m next door to one and I go there all the time.”
TJX (NYSE:TJX) is a retailer that sells discounted merchandise. Its product lineup includes apparel for all ages, home furnishings, jewelry, and various other items. On March 31, Cramer said:
“There’s also seems to be a weird belief that somehow the tariffs won’t hurt retail. I mean, that’s how you got very big moves say in TJ, Walmart, Dollar General, Dollar Tree, maybe their stocks simply got too oversold, or the tariffs are now baked in the stocks. We just don’t know. But we do know that these retail stocks were rallying from the get-go this morning. They’ll definitely be hurt by tariffs. Every one of them.”
8. Waste Management, Inc. (NYSE:WM)
Number of Hedge Fund Holders: 67
Waste Management, Inc. (NYSE:WM) provides environmental services that include waste pickup, recycling, landfill operations, and producing renewable energy from landfill gas. It also handles materials processing, recycling brokerage, and offers construction and remediation services. Mentioning the company, Cramer said, “Utility, Verizon, perfect Coca-Cola, Waste Management. Yeah, these are timeless.”
Diamond Hill Capital stated the following regarding Waste Management, Inc. (NYSE:WM) in its Q4 2024 investor letter:
“As valuations have continued rising and the economic cycle has gotten relatively long in the tooth, we’ve thought carefully about where and how we are exposed to more cyclical stocks. As such, we initiated just three new positions in Q4: Berkshire Hathaway, Aon and Waste Management, Inc. (NYSE:WM).
Waste Management is one of the US’s largest providers of waste-collection services. Its leading footprint of landfill assets provides the company with long-term pricing power. Further, Waste Management has invested heavily in recent years in recycling and renewable natural gas projects — which we believe the market is underappreciating given the value these investments will create as the projects wind down and come online.”
7. The Coca-Cola Company (NYSE:KO)
Number of Hedge Fund Holders: 81
The Coca-Cola Company (NYSE:KO) produces nonalcoholic drinks that include soft drinks, water, tea, juice, and plant-based options. It also supplies beverage concentrates and syrups for sale through retail channels. During the episode, Cramer stated, “Utility, Verizon, perfect Coca-Cola, Waste Management. Yeah, these are timeless.”
On March 31, during an episode of Squawk on the Street, Cramer mentioned The Coca-Cola Company (NYSE:KO) and said:
“In terms of shorting, like if you wanna short, do you short Coca-Cola? No, cause Coca-Cola in 2000, after the NASDAQ broke, was really a terrific stock to own… Look at that April 14th to April 17th 2000 period when we had this dramatic switch. Which was rather incredible, which was the fastest I’ve seen where Coca-Cola went from being a loser to a winner. I think we’re there. Coca-Cola’s having a good quarter.”
6. Verizon Communications Inc. (NYSE:VZ)
Number of Hedge Fund Holders: 74
Verizon Communications Inc. (NYSE:VZ) offers communication, technology, and entertainment services to consumers, businesses, and government clients. Its services include wireless, broadband, and wireline options. During yesterday’s episode of Mad Money, Cramer said, “Utility, Verizon, perfect Coca-Cola, Waste Management. Yeah, these are timeless.”
Over the past year, Verizon (NYSE:VZ) stock gained a modest 8.95%. In March, Cramer stated, “We got a real ugly read about the state of telecommunications today from Verizon, the stock fell 6.5% 3 points, wow.”
Furthermore, on April 11, Evercore ISI raised its rating on Verizon (NYSE:VZ) to Outperform from In Line and increased the price target to $48 from $44. The firm noted that although the company has outpaced the broader market this year, it still trails behind AT&T and T-Mobile after years of underperformance.
The analyst pointed to solid progress in postpaid subscriber trends in Consumer, steady growth in Business wireless, and consistent broadband subscriber results. Evercore sees the market overlooking the strength of Verizon’s (NYSE:VZ) wireless revenue outlook, fiber expansion, and the potential benefit from the Frontier acquisition. Verizon is now its top pick in the wireless space and its top value idea.
5. McKesson Corporation (NYSE:MCK)
Number of Hedge Fund Holders: 78
McKesson Corporation (NYSE:MCK) delivers healthcare services through the distribution of medicines, medical products, and logistics. It also provides technology, consulting, and support to healthcare providers, biopharma firms, and patients. Cramer commented, “Cencora and McKesson, you know those middlemen, they always work.”
Last week on Squawk on the Street, discussing McKesson Corporation (NYSE:MCK), Cramer said:
“Can I give you the number one stock today? That’s not up enough yet? But people could go buy? McKesson. Because they actually got, the two Democrats on the FTC against them, I don’t know if they’ve been seen lately. . .McKesson is the big winner. They’re not gonna have any investigation. They can jack the prices up all they want… McKesson’s an amazing company. Nobody likes them except for their shareholders.”
4. Cencora, Inc. (NYSE:COR)
Number of Hedge Fund Holders: 58
Cencora, Inc. (NYSE:COR) supplies pharmaceutical products and offers healthcare services globally. It provides support to healthcare providers through pharmacy operations, clinical trial support, and specialty logistics. During the episode, Cramer said, “Cencora and McKesson, you know those middlemen, they always work.”
It is worth noting that in December 2024, commenting on Cencora (NYSE:COR), Cramer stated:
“Look I think that if I were the people at McKesson, Cencora, when the President-elect decides that he is going to take a shot at you, as we know from his first time around, it’s not one off. There’s multiple shots. Multiple attempts to say listen you guys are . . . friction. I would not buy these stocks.”
3. Humana Inc. (NYSE:HUM)
Number of Hedge Fund Holders: 64
Cramer commented on Humana Inc. (NYSE:HUM) during the episode and said:
“Is the market reflecting any of this? No, but something else is happening too. People are investing in companies, just started yesterday, that don’t have all that much exposure to China or none. You can see it in healthcare, excluding drugs, which are still facing the possibility of their own set of tariffs. UnitedHealth Group and Humana are good examples. They were up once again. I mean it’s really incredible. Former up nearly 3%, The latter up 2%.”
Humana (NYSE:HUM) offers a range of health insurance and care services, including medical plans, pharmacy benefits, and home health solutions. It also provides support for government programs and serves individuals, employer groups, and military members. Year-to-date, HUM stock went up more than 15%. Additionally, in January, Cramer remarked:
“And then the other stocks David that are up, shockingly, are the managed care stocks. Because the Medicare provisions were much better than expected on Friday. Should really help Humana all day.”
2. UnitedHealth Group Incorporated (NYSE:UNH)
Number of Hedge Fund Holders: 150
Commenting on how people are investing in light of tariffs, Cramer mentioned UnitedHealth Group Incorporated (NYSE:UNH) and said:
“Is the market reflecting any of this? No, but something else is happening too. People are investing in companies, just started yesterday, that don’t have all that much exposure to China or none. You can see it in healthcare, excluding drugs, which are still facing the possibility of their own set of tariffs. UnitedHealth Group and Humana are good examples. They were up once again. I mean it’s really incredible. Former up nearly 3%, The latter up 2%.”
UnitedHealth Group (NYSE:UNH) is a healthcare company that provides health benefit plans, care delivery, pharmacy services, and health management programs. It supplies software, consulting, and data products to businesses in the healthcare industry.
Parnassus Investments stated the following regarding UnitedHealth Group Incorporated (NYSE:UNH) in its Q4 2024 investor letter:
“We sold two Health Care positions during the quarter, pharmaceutical company AstraZeneca and insurerUnitedHealth Group Incorporated (NYSE:UNH). UnitedHealth’s business model is becoming higher-risk, which coupled with slowing Medicare Advantage growth and regulatory uncertainty led to us exiting the position.
After the UnitedHealth stock price recovered to its historical multiple in early November, we felt it was an opportune time to sell based on our concerns about slowing Medicare Advantage growth and the company’s growing business complexity and risk.”
1. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 166
Apple Inc. (NASDAQ:AAPL) was mentioned during the episode, and here’s what Cramer had to say:
“The companies that are dependent on China, companies like Apple are going to have a very hard time moving their manufacturing. They’ll have to take a monumental hit. I have said own Apple, don’t trade it for years, but boy oh boy, will Apple suffer if the White House doesn’t cut a deal or at least give Apple a needed exemption as it should have given because it’s pledged to do so much here.”
Apple Inc. (NASDAQ:AAPL) creates and sells a range of tech products including smartphones, computers, tablets, wearables, and accessories. It also provides digital services. The company manages subscription offerings like Apple Music, Apple TV+, and Apple Arcade. It operates platforms such as the App Store and Apple Pay.
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