Jim Cramer Warns on General Motors (GM): “Tariffs Kill This Stock”

We recently published a list of Jim Cramer Discusses These 10 Stocks & Says US Faces Unfairly High Tariffs Abroad. In this article, we are going to take a look at where General Motors Company (NYSE:GM) stands against other stocks that Jim Cramer discusses.

In a recent appearance on CNBC’s Squawk on the Street, Jim Cramer reiterated that the Trump administration has to clarify its narrative about tariffs to convince the average American about their utility. Cramer shared that American goods are unfairly treated all over the world. When asked what he would prefer, he replied:

“No, there are an amazing number of tariffs against us. Amazing number. And it’s so palpably horrible, but we don’t explain it. I mean I know a lot of tariffs against us. It’s unbelievable what’s tariffed. Almost everything is tariffed against us. But the President just says listen, we’re gonna get them. But why? And the answer is, if you saw what he saw, you would say, this horrible. I’m with the President. But there’s no list. There’s no attempt to educate us.”

Cramer added that few people are smart enough to figure out the impact of tariffs. On a recent report from Bank of America highlighting that it wasn’t a bear market, Cramer was appreciative. “I found the notes this morning were genuinely reassuring,” he outlined. He also commented on a shareholder letter from bank CEO David Solomon. Cramer opined that most banking officials had become too optimistic about lower banking regulations once President Trump took over. According to him, this included Solomon. The CEO “just didn’t see it coming either,” Cramer said and added, “no one really saw it coming that the President would not do any deregulation.”

Worried that his remarks about tariffs might be misconstrued to be against them, Cramer was careful to stress that “I may agree with everything he [The President] is saying, I just don’t agree with the way it’s being said.”

The conversation then shifted to a potential positioning unwind in the market with an early stage of investors assessing the risk of a recession. According to him:

“Well, okay look, I mean there are companies, and there’s companies that are making a lot of money. And their stocks are being thrown out as well as companies that are not doing as well. But until eight weeks ago many, many companies were doing well. Now see that seems to be an abstraction too. Does it matter to the President that every retailer says that they’re doing poorly. You know, if you say no, then you have companies that can go bankrupt. Now on whose hands are that. The companies themselves? How about creating an atmosphere that makes it so you don’t want to buy anything? That’s what’s going on. Creating an atmosphere where you don’t want to travel. Where there had been a bull market. Creating an atmosphere where you wanted to take a plane trip somewhere and now you don’t. What does that do? That is not about tariffs. It’s not about France. It’s not about Germany. It’s not about, remember we’re gonna have to put tariffs on all the autos. Germany, Japan, Korea cause they have almost no tariffs. And if we’re doing this thing, I’d say look here’s what we’re putting on, here’s what they do to us. But no. It has to come staggered. So, like, the market will rally to I don’t know 5,600 and then we’ll get hit by a posting. And the posting just talks about how miserable and horrible the Koreans are and who are the Germans to do this to us? And Japan’s outrageous!”

Our Methodology

To make our list of the stocks that Jim Cramer talked about, we listed down the stocks he mentioned during CNBC’s Squawk on the Street aired on March 14th.

For these stocks, we also mentioned the number of hedge fund investors. 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 Warns on General Motors (GM): "Tariffs Kill This Stock"

General Motors Company (NYSE:GM)

Number of Hedge Fund Holders In Q4 2024: 68

General Motors Company (NYSE:GM)’s shares performed well in 2024 as stable demand amidst a downturn in the auto sector led investors to flock to the stock. However, 2025 has been a tumultuous year for the firm as the shares have struggled due to worries about the impact of tariffs against Canada and Mexico on the firm’s supply chain. General Motors Company (NYSE:GM)’s shares are down by 5% year-to-date due to these worries. In his previous comments, Cramer has advised viewers to reconsider stock-buying decisions. Here are his latest remarks:

“People don’t realize that when the President was talking about putting bigger tariffs on Canada. That is right, that just kills GM. Explains why their multiple’s really bad. . .These autos are really ping pong. So if you’re gonna hurt GM. . . you gotta then put a tariff on Korea. I just wish the President would get over it.”

Overall, GM ranks 6th on our list of stocks that Jim Cramer discusses. While we acknowledge the potential of GM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than GM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.