During Wednesday’s episode of Mad Money, host Jim Cramer weighed in on the dynamics between the United States and China, especially in relation to President Donald Trump’s trade approach and its influence on the stock market.

“President Trump better be a much tougher negotiator than President Xi because right now, we’re so hooked on China, it’s almost hard to believe. That’s why it’s so worrisome when the President posts on Truth Social about the negotiations, as if there are any real negotiations going on at all.”

READ ALSO: Jim Cramer’s Thoughts on These 12 Stocks and Jim Cramer Talked About These 16 Stocks Recently.

Cramer said that nearly every day, a company announces that it is trying to reduce its reliance on China. He noted that moving away from China is not just difficult; in some cases, it is impossible, as the US depends on the country for various items and processes, including manufacturing, raw materials, and more. He referenced Trump’s recent post on Truth Social, where the president wrote, “I like President XI of China, always have, and always will, but he is VERY TOUGH, AND EXTREMELY HARD TO MAKE A DEAL WITH!!!”

Referring to the latter half of Trump’s statement, which was written in all capital letters with three exclamation points, Cramer said, “Now that’s a serious analysis.” He then asked just how deep America’s dependency on China is and mentioned that it is like an addiction. He said, “You know what, it’s like fentanyl.”

“Bottom line: I just hope that Trump’s friendship is requited by Xi. We may need to change the rules or start playing a whole new game. Of course, the president could always fold, and Wall Street would love it, but I don’t see that happening anytime soon. Nor should it.”

Our Methodology

For this article, we compiled a list of 14 stocks that were discussed by Jim Cramer during the episodes of Mad Money aired on June 4. We listed the stocks in the order that Cramer mentioned them. We also provided hedge fund sentiment for each stock as of the first quarter of 2025, which was taken from Insider Monkey’s database of 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 Put These 14 Stocks Under the Microscope

14. Capital One Financial Corporation (NYSE:COF)

Number of Hedge Fund Holders: 93

Talking about deregulation, Cramer noted that Capital One Financial Corporation’s (NYSE:COF) merger with Discover Financial Services was possible under the new administration.

“There are many reasons why Trump won in November, inflation, immigration, cultural backlash, but there’s one reason why the business community got behind him in a way they never really did in 2016 or 2020, and that’s deregulation…[Referring to the Fed’s decision to remove Wells Fargo asset cap restriction] This one comes on the heels of the decision by the administration to let Capital One merge with Discover Financial, okay.

By the way, that was another deal that was held up by Biden’s draconian antitrust regulators. I welcome this deregulation, not because I’m some sort of laissez-faire ideologue, but because it allows competition to scale…Capital One can now challenge American Express and other top credit card issuers. The Biden administration seemed to hate all mergers, but sometimes smaller competitors need to join forces if they want to go toe to toe with the big guys.

While I’m at it, let me say that both of these stocks are tremendous buys. Capital One will be able to purchase a ton of stock come July… My hope is that the deregulation will continue because that’s exactly what we need after four years of heavy-handed regulation. Capital One Discover, no cap on Wells Fargo, all I can say is it’s about time.”

Capital One Financial (NYSE:COF) provides a range of banking and lending products, including credit cards, loans, deposit accounts, and online banking services, while also offering advisory and treasury management solutions.

13. Wells Fargo & Company (NYSE:WFC)

Number of Hedge Fund Holders: 88

Discussing how deregulation would be good for companies, Cramer mentioned Wells Fargo & Company (NYSE:WFC) and said:

“There are many reasons why Trump won in November, inflation, immigration, cultural backlash, but there’s one reason why the business community got behind him in a way they never really did in 2016 or 2020, and that’s deregulation… This morning, we got the chance to interview Charlie Scharf, the CEO of Wells Fargo. Talked about the Federal Reserve’s removal of the asset capital on this bank last night… Wells certainly had it coming back then, but it was a severe penalty… I knew the Biden administration wouldn’t lift the cap. They had zero sympathy for big business, and they didn’t like the banks…

… I welcome this deregulation, not because I’m some sort of laissez-faire ideologue, but because it allows competition to scale. Wells Fargo can now give JPMorgan a run for its money…

… While I’m at it, let me say that both of these stocks are tremendous buys… Wells Fargo will be able to save a ton of money as the endless compliance monitoring may have finally run its course. Seven years of purgatory is enough already. The all-new Wells deserves to be let out of the doghouse. My hope is that the deregulation will continue because that’s exactly what we need after four years of heavy-handed regulation. Capital One Discover, no cap on Wells Fargo, all I can say is it’s about time.”

Wells Fargo (NYSE:WFC) is a financial services company that offers banking, investment, mortgage, and other financial products. It serves customers around the world.