I doubt the stock market can absorb much higher tariffs, Jim Cramer says, but a China deal could provide a 'major boost'

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I doubt the stock market can absorb much higher tariffs, Jim Cramer says

said Tuesday that President Donald Trump's willingness to raise tariffs on Chinese imports was the "more important" statement that the leader of the free world made in a speech earlier that day."close" to settling on a so-called phase one trade deal"When you consider how high this market is, I doubt it can absorb much higher tariffs," thehost said. "But if the Chinese really are eager to make a deal, well that would give the averages a major boost.

Cramer went on to explain varying "glass half full" and "half empty" perspectives on the latest developments in the ongoing U.S.-China trade war. The pessimistic glass-half-empty cohort forecast that more pain is in the works as the December tariff hikes could go into effect. The optimistic glass-half-full contingent is banking on Trump's tease that a breakthrough in trade talks is nigh.

However, there is a "glass-totally-full camp" that Cramer said thinks a trade truce between the world's largest economies is imminent, pointing to positive comments the president's chief economic advisor Larry Kudlow"When Larry spoke to CNBC later in the afternoon, he talked about how there could be some real agreement going on ...

"I think that as long as the interest rates stay low ... this sense of optimism can sustain itself until we get some bad news on the China front," he said. "Of course, if there's a major trade deal, the glass-is-full crew will turn out to be right — otherwise they're going to be too bullish unless some fresh money comes in to take us higher regardless."

 

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That’s what was said in late 2018.

Depends on if the Chinese currancy goes lowerl

I thought we were winning the trade war with tariffs This is a total cya take on the future of the market.

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