Trump does not care about his policies in China are hurting US companies

President Donald Trump has virtually "blacklisted" Chinese telecommunications giant Huawei and made it clear he does not want US companies to do business with this country, CNBC's Jim Cramer said Thursday.

That diverted up to 7.3% of the shares of a group of chip makers – Qualcomm, Skyworks Solutions, Broadcom, Micron and Xilinx – he explained.

"Huawei has the best technology for building 5G wireless infrastructure, but without components of US suppliers, this technology just does not work. They will be beaten," said the host of "Mad Money". "This could be the end of Huawei 's leadership in 5G.It is a blow for this pioneering company that, in the opinion of many industry players, is in the offing. reality that a tussle. [Chinese] Communist Party."

On Wednesday, the Trump administration created a national emergency through a decree to regulate any information technology or communications company that "poses an unacceptable risk to the national security of the United States." The decision bars US companies from buying equipment from Huawei and requires a special license to sell components to the company, Cramer said.

The semiconductor trading fund, which tracks chip values, fell 1.4%.

"This was a major escalation of the White House." Trump did the same thing to a small Chinese company not long ago, ZTE, although he was not there. Was quickly brought back, "said Cramer. "This one feels different … It's clear that the president no longer cares whether his actions hurt big American companies."

Although several semiconductor names were successful during the session, the major US indexes all gained less than 1%. The Dow Jones Industrial Average added about 214 points, while the S & P 500 and Nasdaq Composite gained 0.89% and 0.97%, respectively.

"It's not that we rallied together, it's because the components of the rally made a lot of sense," Cramer said. "It was a day when we separated China's winners from China's losers, which allowed many shares to roar on the basis of good results by old-fashioned action."

Cisco jumped 6.7% and Walmart, which has exposure in China, climbed 1.43%. The host called them the "winners of the surprise".

Cramer said that many companies were waiting for Cisco to stumble, but the network equipment manufacturer beat revenue and revenue forecasts. Walmart, which invests in its digital and other businesses, delivered earnings per share above expectations and increased US sales by 3.4 per cent.

"They expressed some immunity from the tariffs that stunned Wall Street," said Cramer. "These companies were widely perceived as being caught in the crossfire, it turns out that it's not quite true."

It does not look like the assets of Ralph Lauren and Macy, who ended another day in the red. Earlier this week, their shares rebounded after good quarterly results, but fell after revealing their exposure to China.

Cisco CEO Chuck Robbins told shareholders that tariffs on imports from China had minimal impact, after being prepared for the worst six months ago, and relocation of shopping outside the country.

Walmart warned that it would have to raise its prices if Trump kept his promises to remove 25% of additional tariffs on $ 300 billion, adding to the current $ 200 billion of Chinese imports. .

Fortunately, the department's giant does not ship food from the country, which means that prices for their groceries can remain low, Cramer said. In addition, the retail giant can weather the storm with its magnitude because it "can supply better than any other retailer on the planet, except perhaps Amazon."

If Walmart is to switch suppliers, it will do so and will keep better prices than its competitors, he said, adding that he was more worried about the negative impact of the US dollar on international sales of the chain.

"Here's how I see it: President Trump is now in charge, he's in charge of US companies that can do business in China, if you do too much, he'll hit you, and if you buy too much, he'll find you. too much on them, it will crush you, "said Cramer. "Companies that have not witnessed this escalation are likely to be reduced to nothing, but those who thought about the future are reassessed at a higher status … I think their actions are not going climb higher. "

Disclosure: The Cramer Charitable Trust holds shares in Amazon.com and Cisco.