President Donald Trump's recent moves against Chinese Chinese telecommunications giant Huawei show he "no longer cares if his actions hurt major American businesses," CNBC host Jim Cramer said Thursday.
The "Mad Money" host argued the Trump administration's national emergency via executive order Wednesday, banning American businesses from buying equipment from Huawei and requires a special license to sell components to the company, "was a major escalation from the White House."
"Trump did the same thing to a smaller Chinese company not that long ago, ZTE, although he quickly walked it back," Cramer said. "This one feels different . . . It's clear the president no longer cares if his actions hurt major American businesses."
Yet the stock market did not tank.
"This was a day where we separated the China winners from the China losers, and that allowed many stocks to roar based on good old-fashioned earnings per share," he said.
"Here's how I see it: President Trump is now in charge," Cramer said. "He's in charge of which American companies can do business in China. If you do too much, he'll smite you. If you buy too much, he'll find you. If you rely on them too much, he'll crush you."
"The companies that didn't see this escalation coming, they may get streamrolled, but the ones that thought ahead are being re-rated to more exalted status . . . I think their stocks aren't done going higher," he added.
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