Back in 2024, on May 14, Mad Money’s Jim Cramer reacted to Biden’s 100% tariff on Chinese electric vehicles at the time, framing it as a major protective measure for U.S. automakers. He argued that Ford Motor Company (NYSE:F), long viewed as vulnerable to low-cost Chinese EVs, was a clear beneficiary back then:
“The biggest winners though will be the American automakers. There’s a widespread belief that our car companies are going to be roadkill once China’s auto industry gets here. We got that from — who? None other than the automakers themselves, especially Ford’s executive chairman Bill Ford. He’s been the most adamant about the existential threat of government-subsidized competition from the PRC […]
Hey, with 100% tariff on Chinese autos, Ford doesn’t need to be all that ready — it can focus on other things that actually make money. […]
I like this policy. But even if you hate it, it’s a clear giveaway to Ford and GM. And you got to cash in on a giveaway when you get it. […]
The chief reason GM and Ford stock sell at the bottom of the S&P 500 barrel is because of this existential Chinese threat. Whenever China’s been allowed to dump merchandise, they’ve destroyed pricing and destroyed companies. That won’t happen here. Not with these tariffs. I’ve been a broken record on Ford — I’m particularly aware of that — and we own it for the Charitable Trust. It’s got a 4.83% yield, for heaven’s sake. If Ford can just curtail the immense losses in electric vehicles — I mean, some people think more than $150,000 per car — well then it’s much easier with the new tariffs, and the stock can and will go higher.”
Cramer’s call was incorrect, as Ford’s stock declined 14.39% over the past year, due to the tariff risks that automakers face.
Ford Motor Company (NYSE:F) is one of the largest U.S. automakers, producing combustion engine, hybrid, and electric vehicles under the Ford and Lincoln brands. Cramer recently compared its position to that of its competitor, General Motors, saying:
“You know, listen, Phil, you had an amazing interview with Mary Barra, I’ve got to ask you, it looks like that Ford has an edge on GM. When it comes to what’s going on. In terms of tariffs. Because I think that Jim Farley for whatever reason makes much more in pure America than GM does. [Phil agreed]”
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