Trump’s tariff policies have put Big Tech in a jam, Jim Cramer says

CNBC's Jim Cramer on Wednesday opined on how the Trump administration's tariff policies have put Big Tech in a difficult situation.
"In this new world, any company that outsourced their manufacturing is a target and, short of moving everything back to America, which is impossible, there may not be anything they can do to make it up for it," Cramer said.

CNBC's Jim Cramer on Wednesday explained why he thinks the Trump administration's tariffs and trade regulations have put companies that manufacture heavily outside the U.S., especially Big Tech, in a tough situation with no clear way out.

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"In this new world, any company that outsourced their manufacturing is a target and, short of moving everything back to America, which is impossible, there may not be anything they can do to make it up for it," Cramer said.

President Donald Trump has issued steep tariffs on dozens of countries, which has shaken Wall Street and sent the averages into a state of flux. The new duties include a 145% tax on imports from China, where many prominent U.S. companies manufacture the bulk of their products, including tech giants Nvidia and Apple. Nvidia helped lead the Nasdaq Composite down, with the graphics chip maker shedding 6.87% by Wednesday's close. The decline comes after the company announced it would take a $5.5 billion charge related to exporting some of its chips after the government said it needs a license to send chips to China and a few other countries.

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Cramer pointed out that Apple and Nvidia have pledged about $500 billion each to manufacture products in the U.S. But he suggested it seems there seems to be no "quid pro," from the government in exchange for these commitments — like exemptions or other benefits, as some on Wall Street may have expected. The companies are now stuck with both costly domestic infrastructure agreements and hefty tariffs, he continued.

Trump not only targeted China, but Vietnam, where Apple had tried to diversify its supply chain, Cramer noted. He said "it's almost like you can run, but you can't hide," from tariffs. While the White House did announce electronics would be temporarily exempt from certain tariffs, Cramer said he doesn't believe this will "give the company anything near...a permanent break." He also noted that Apple has created a slew of jobs in the U.S. not related to manufacturing, especially service jobs related to software. These roles are an important part of the economy, Cramer continued, but said the White House doesn't seem to be concerned with protecting the sector.

"Now it's starting to dawn on people that there's no immunity from the president's wrath on the issue, just like there's no immunity for any law firm that's ever gotten on his bad side, or any university, for that matter," he said.