Charts suggest market could weather Trump tariff increases [Video]

CNBC’s Jim Cramer on Tuesday said the charts suggest that fears about President-elect Donald Trump’s intentions to implement major tariffs on imports won’t affect the market just yet, and the impact of any actual tariffs will be lessened if the market remains bullish.

Cramer examined analysis by Jessica Inskip, director of investor research at StockBrokers.com.

“The charts … suggest that tariffs had little impact on the market until they actually materialized during Trump’s first term — all the saber-rattling beforehand didn’t do much damage,” he said. “Even when the tariffs actually hit and the market sold off, we eventually erased those losses the moment that the Fed stopped raising interest rates. … I think she’s got a real good point.”

To explain Inskip’s analysis, Cramer reviewed charts of the S&P 500‘s performance, including one from mid-2017 to 2020, reviewing how the index behaved during Trump’s previous term when he raised tariffs on a variety of goods including steel, aluminum and solar …