CNBC’s Jim Cramer criticized former President Trump’s proposal to increase tariffs and said “of course” it would be inflationary.
In Monday’s broadcast of CNBC’s “Squawk on the Street,” David Faber asked his co-anchor, Cramer, about the combined effect that Trump’s proposals on immigration and tariffs could have on wages.
“Well, I mean, unless you’re Hamilton, I’m kind of against it,” Cramer said, referring to the country’s founding father who embraced a nationalist approach to economic policies. Alexander Hamilton, like Trump, supported the use of tariffs on good to stimulate domestic manufacturing.
On whether it’s going to be inflationary, Cramer told Faber, “Of course, of course,” but said he wasn’t sure whether there would be one-time spike in inflation, after the policies were put in place, and then even out, or whether inflation would continue to rise.
“I don’t know,” Cramer said, in remarks highlighted by Mediaite. “I mean when you see tariffs like that, obviously you think about 1929 to ‘32 and realize how wrong they are.”
Trump spoke last week to the Economic Club of New York and outlined his economic agenda, signaling a potential second term would look much like his first when it comes to tax policy and tariffs.
Trump said he would push to extend the individual tax cuts enacted in 2017 that are set to expire in 2025. He also said he would push to lower the corporate tax rate even further than the 2017 law did, from 21 percent to 15 percent.
He also outlined his plan to use tariffs aggressively to target companies that outsource jobs or do not manufacture products domestically.
Trump’s tariff plan, in particular, has faced some criticism from economists – including from Goldman Sachs and from Moody’s Analytics’ chief economist. They said the tariffs could increase inflation and shrink the economy.
Cramer joked that, perhaps, Trump saw the popular Broadway show based on a biography of one of the country’s founding fathers and was inspired by the pro-tariff message of the show.
“Maybe he is invoking Hamilton. Maybe Trump has saw the show. The show’s pretty good. Maybe he saw it twice. It’s very pro-tariff, the show,” he said, adding, “Hamilton was a nationalist. So maybe, I’m saying, Trump might’ve seen the show.”
The Hill has reached out to Trump’s campaign for a response.
