CNBC host and market commentator Jim Cramer warned that America is in store for another “Black Monday” market crash similar to the record 1987 collapse if President Trump doesn’t curtail his tariff plan.
Cramer — who noted that the 1987 crash saw the Dow Jones Industrial Average fall by 22.6% in a single day — said the bloodbath could be repeated after the brutal two-day sell-off following the announcement of Trump’s sweeping tariffs against nearly 90 countries.
“If the president doesn’t try to reach out and reward these countries and companies that play by the rules, then the 1987 scenario… the one where we went down three days and then down 22% on Monday, has the most cogency,” Cramer said on his show Saturday, referencing the worst single-day fall in the history of the Dow.
“We will not have to wait too long to know. We will know it by Monday,” he added.
The president shocked the global economy on Wednesday when he announced a 10% blanket tariff on all imports to the US, with higher levies set to take effect on April 9 against major exporters like China, the European Union, Japan and Vietnam.
China announced retaliatory tariffs as a result of Trump’s order.
In the two days following the “Liberation Day” announcement, the Dow plunged by 3,910 points, making it the worst two-day loss since the pandemic.
The S&P 500 also tumbled by nearly 6%, with the tech-heavy Nasdaq seeing a similar drop.
Total market losses wiped $6.6 trillion off the value of US markets.
While Cramer had fully backed Trump’s plan to impose tariffs, the market analyst said he would no longer be supportive if Monday’s bleak outlook comes to pass.
“If President Trump stays intransigent and does nothing to ameliorate the damage that I saw these last few days, I’m not going to be constructive here,” Cramer said.
“And if Europe moves against our fabulous tech companies next week, then I will be furious.”
Apollo chief economist Torsten Slok ultimately warned that a recession may be in store for the US depending on how long the market shock and tariffs last.
“If these levels of tariffs stay in place for several months and other countries retaliate, it will cause a recession in the US and the rest of the world,” the expert said on Friday.
Despite the alarms rung by economists and market analysts, Treasury Secretary Scott Bessent said the administration will not change course as he tried to downplay the fears of a looming recession.
“There doesn’t have to be a recession. Who knows how the market is going to react in a day, in a week. We’re building the long term,” Bessent, a former hedge fund manager, told NBC News’ “Meet the Press.”
