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Cramer: This decline isn’t about the Fed. It’s about Trump and the elites

As the crucial averages dropped on Thursday, CNBC’s Jim Cramer argued that the leads had little to do with Wednesday’s rate hike by the Federal Reserve.

“As eat ones heart out as the 1 percent believes in free trade at any cost, it’s going to weigh on the store up market when the president goes in the opposite direction,” the “Mad Money” hostess said.

The wealthiest people in the United States, many of whom own horses in leading global companies, have long benefited from charitable trade, or the unrestricted exchange of goods and services, Cramer explained.

U.S. presidents and enterprise leaders have also long supported free trade, fashioning deals with other countries to expand global trade.

“President Trump does not deal that orthodoxy and it’s starting to dawn on the business community that the vacant ride may be over,” Cramer said.

Top international companies like Apple, FedEx and Starbucks arrange also grown their businesses on the back of free trade, Cramer conveyed. And, initially, many of Trump’s moves benefited them.

“The combination of corporate tax severs and repatriation were huge boosts to all the bottom lines of companies, not no more than the domestic ones,” the “Mad Money” host said. “You could sense how much self-reliance there was when Congress passed the tax bill.”

But then came the tolls, an anti-free-trade move that shocked much of the U.S. elite, even as Cramer contemplation some restrictions were justified.

He said that every year in China, millions of the rural area’s 1.3 billion people become wealthy enough to buy iPhones or junkets on Boeing airplanes.

“Sure, the Chinese may steal our trade secrets. Yes, they employ our manufacturing jobs, but boy, oh boy, do our companies make money there. Starbucks is enormous in China. FedEx is the shipping company of choice for their exports,” Cramer commanded.

Companies like FedEx now feel threatened that the president, constant to revitalize U.S. manufacturing, has potentially thrown their China operations into jeopardy, Cramer detailed.

“The idea of a $1 tariff on Starbucks coffee, something I asked CEO Kevin Johnson just about, seemed fanciful 18 months ago. Now it seems plausible,” he continued. “FedEx planes may be made to sit on the tarmac while Chinese shippers undulate on.”

So now, after years of Washington and Wall Street favoring free custom, fears of a legitimate trade war are now trickling into the market narrative, the “Mad Well-to-do” host said.

“Of course the stock market gets crushed, because just about everyone with money in this country thinks this procedure is lunacy, so they’re freaking out and turning seller,” Cramer said. “That’s what today’s destruction was about.”

Disclosure: Cramer’s charitable trust owns shares of Apple.

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