Trump commits a "serious mistake" with Mexico's tariffs

Jim Cramer of CNBC said Friday that it was a "huge mistake" for President Donald Trump to settle a trade dispute with Mexico in an effort to reduce immigration at the border.

"It is a mistake to use trade as a weapon against a government happy to cooperate with us in the field of trade," said the animator of "Mad Money."

Cramer has generally been in favor of the long trade war with China to fight against the "predatory practices" used by the country, but Mexico "is the best trading partner we could ask for."

According to Cramer, company executives believe that Trump's tariff threat to Mexico could be a headache. But "hope" should not be part of the equation, said the animator. Many companies have seen their shares collapse pending an agreement between the United States and China, he said.

"You have to badume that the president will actually apply these rates," said Cramer. "You do not want to get the pants when he does exactly what he said he would do."

In a tweet on Thursday, Trump announced tariffs of 5% on all imports from Mexico. The taxes are expected to come into effect on June 10. In a series of increases, the rate could reach 25% later this year if the country does not move to stop the flow of asylum seekers crossing the southern border.

"At the moment, Trump is trying to get Congress to adopt its revised version of NAFTA.Apply a series of tariffs on Mexico from nowhere – the left field – does not help," said Cramer. "A dive-like tweet is inappropriate for our big country, we are all losers this time around."

Cramer drew a line in the sand on President Donald Trump's attempt to negotiate trade via Twitter.

After backing a tough economic policy towards China, Cramer denounced the unexpected 5% tariffs that Trump threatened to slap on all imports from Mexico starting next month. The threat sent the top three US indexes over 1% each Friday.

"When Trump attacks the Mexican government, which has already made a lot of concessions during renegotiations with NAFTA, investors are nervous. [and] makes them want to sell, "said the animator. There is the impression that there is no plan, everything is possible, and it's a bad feeling because markets hate uncertainty. "

America has imported more than $ 346 billion worth of goods from its southern neighbor in 2018, according to the US Trade Representative's Office. Mexico is the country's second largest trading partner, and tariffs on imports could cost US consumers at least $ 18.6 billion.

The Trump administration said the tariffs would put pressure on the Mexican government to prevent the flow of undocumented asylum seekers crossing the border. Trump said he had planned a series of tax hikes over the next few months if the problem was not resolved to his satisfaction.

"If you want a strong economy and higher stock prices … the last thing you need is a president bursting into Twitter shouting," Who is the next to be punished? "… You can not conduct negotiations outside the left field, via tweet," said Cramer. "At a time when all that matters is who will be punished … we must be very careful, unless we get some kind of revolutionary data that changes the whole thing. story. "

Click here to read what Cramer is monitoring in the coming week

Investors looking for a stock of needles in a haystack with limited exposure to tariffs could fall on Okta.

CEO Todd McKinnon told Carmer in an individual interview Friday that the global cloud computing software company was less exposed to the Chinese economy than most other entities. But the company is monitoring trade tensions, he said.

"In an indirect way, we also help companies from all over the world to succeed," he said in an interview. "Indirectly, we benefit from that, so we have a careful eye on that too."

Read more here

Some of the best-known names on the stock market, such as General Electric and United Airlines, rely on Zscaler to protect its systems against phishing attacks. Attacks are made via social engineering attacks to steal user data, such as login credentials.

Zscaler, the cloud-based information security company, acts as a checkpoint almost like TSA, an international airport, said general manager Jay Chaudhry at Cramer.

"We inspect everything that goes in and out of your device to make sure we are blocking the damage we are protecting, and we are making sure that people are doing good business," he said.

The company blocks no less than 100 million threats a day, he confirmed.

See the full interview here

IBM CEO Ginni Rometty said companies need to prepare the population and its shareholders for the transformation of the AI-based workforce.

In a world where we expect artificial intelligence to have an impact on all existing jobs, she said business leaders have a social, organizational and organizational responsibility. important economic: helping high school students develop the skills needed for what she called "new pbades" at the intersection of companies. and technology. Think about the cloud and cyber careers, she said.

"[There’s] a different paradigm that I think will be needed to make this period an inclusive era. That's one of the things that concerns me the most, Rometty said in an interview with Carmer. We are building these technologies, so I think we have the responsibility … to prepare society for these technologies.

Get more here

During Cramer's flash game, the host of "Mad Money" quickly comments on his choices regarding stock selection of the day.

Aramark Holdings: "I did not like the last quarter, they are under the penalty, we will ignore that one."

California Resources: "Stay away – it's a fossil fuel company that we do not like, we recommend very little."

Medifast: sell it. "No. Planet Fitness, my friends."