Jim Cramer Observes Ford Stock Drop Despite Auto Import Tariff News

Ford Motor Company (NYSE:F) is one of the 13 stocks recently discussed by Jim Cramer. During the episode, Cramer discussed the impact of tariffs on the stock, as he said

“Keep in mind, we have a big, persistent trade deficit with both Japan and South Korea. You tack on a big tariff on imports from those countries, and suddenly, about 17% of vehicles made there and sold here are priced out of the market. In other words, this is great news for domestic automakers. Ford and GM should be able to clean up, yet both their stocks went down today. Hmm, sounds like not everybody believes.”

Ford (NYSE:F) designs, manufactures, and sells vehicles under the Ford and Lincoln brands, including combustion, hybrid, and electric models. The company provides financing, leasing, digital services, and dealer support programs. In a March episode of Mad Money, Cramer mentioned the company and said:

“A 50% tariff of Canadian aluminum doesn't work because there's no new source to replace it. Wherever we get aluminum it's going to be a lot more expensive, raising the price of cars and trucks dramatically, really hurting GM's profits; Ford’s too. I don't think it's a mistake to say that the auto companies are in real trouble with a 50% tariff on Canadian steel and aluminum. You certainly can't own their stocks.”

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Disclosure: None. This article is originally published at Insider Monkey.