CNBC's Jim Cramer said American automakers like Ford and General Motors will benefit from the Biden Administration's tariff increase on electric vehicles imported from China.
"Not only does this tariff protect American car companies from cheap Chinese electric vehicles, it also means that their regular vehicles — their regular cars and trucks and hybrids — will benefit, too," he said.
Cramer noted that there has been widespread fear across the auto industry that American companies will be crushed when less expensive Chinese cars flood the market. But with Biden increasing tariffs on Chinese electric vehicles from 25% to 100% this year, automakers like Biden will also raise tariffs on semiconductors, solar cells, masks and medical gloves as well as issue first-time tariffs on medical needles on syringes. Cramer noted that there are a host of other stocks that will also benefit like
Cramer also said Ford shares can go higher if the company can "curtail the immense losses in electric vehicles,""The chief reason GM and Ford stocks sell at the bottom of the S&P 500 barrel is because of this existential Chinese threat," he said. "Whenever China's been allowed to dump merchandise, they've destroyed pricing and destroyed companies. That won't happen here now, not with these tariffs.