In a recent episode of Mad Money, financial expert Jim Cramer discussed the implications of the staggering 145% tariff imposed on goods from China, a move he characterized as more akin to an embargo than a typical tariff. Cramers insights come in the wake of escalating trade tensions and shifting economic strategies that have captured the attention of investors around the globe.

On Thursday, Cramer expressed his deep concerns about this unprecedented duty, stating, "We now have a 145% tariff on Chinese goods. Now, a number that high frankly isnt really a tariff. Its more of an embargo. Almost nobodys gonna pay that much of a markup. Its a recipe for losing money. His assertion underscores the potential consequences for both consumers and businesses, highlighting the unsustainable nature of such financial burdens.

Delving deeper into the political landscape, Cramer noted that former President Donald Trump appears to harbor more frustration towards previous administrations for their perceived failure to defend U.S. trade interests than he does towards Chinese President Xi Jinping. Trumps rhetoric often reflects a respect for Xi, which Cramer pointed out as interesting given the current economic climate. "I sympathize with Trumps objective," Cramer remarked, emphasizing that while restrictions may be warranted, the country is alarmingly unprepared for the repercussions of such drastic measures. He lamented, "As a nation, shamefully, weve gotten addicted to cheap Chinese imports." This addiction, according to Cramer, could lead to significant disruptions in the economy.

Further analysis from Cramer indicated that the market is beginning to differentiate between companies with exposure to China and those without. "What we saw today was the beginning of a sorting period between those that have no China exposure and those that do," he stated. He expressed concern for companies heavily reliant on Chinese imports, noting that many of these businesses are significant employers and generally strong entities. Yet, their very foundations may struggle under the weight of a new economic reality.

Cramer articulated a belief that while the U.S. could theoretically operate without economic ties to China, such a shift would likely lead to heightened domestic costs, increased unemployment, and a precarious dependence on other international partners. He emphasized the stakes involved, arguing, "Yes, we have to take them on now or never," but he added a stark warning about the potential for widespread pain that the public might not be adequately prepared for.

In conclusion, Cramer posed a critical question regarding the value of these trade strategies. "Is it worth it? Depends. I think its worth some temporary pain to drive a hard bargain though and get a more favorable trade deal out of the Chinese government. But its not worth it to go back [from] $439 billion in imports to zero. The urgency in his tone suggests that while action may be necessary, the path forward is fraught with challenges.

As part of our ongoing exploration into Cramers market insights, we compiled a list of 12 stocks he discussed during the April 10 episode of Mad Money. This list not only features the stocks in the order Cramer mentioned them but also provides an analysis of hedge fund sentiment for each stock as of the fourth quarter of 2024, utilizing data from Insider Monkeys extensive database of over 1,000 hedge funds.