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Jim Cramer: A Cold War With China Is Worth Avoiding

I wish I could say buy this dip. But the dip is one that's not necessarily going to have an ending today.
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We don't need China. That's right. We don't, that is if we want to have no access to their products and no access to their markets.

Maybe it comes to that. Maybe that's where President Trump wants us.

We have to accept the consequences that we will be going down more than just the path of being a tougher trading partner. We will not be in a trade war. We will be in a cold war and that is worth avoiding.

Look, the Chinese haven't played fair. Everything that the president has said about what they have done is true. So, logically, if you truly felt there was no hope they would change their ways you slowly, over time, allow companies that want to get out of China get out, and not create total havoc in the process. While you are doing that there is no need to communicate through Twitter that you are doing so.

This matters because as I said last night it is possible that we could go into a recession and this spat right here right now determines if we do or if we don't.

It's the drama, though, not the substance, that will make it so difficult, especially with the ad hominem attack on Fed Chair Powell, whom he obviously wants to quit.

I wish I could say buy this dip. But the dip is one that's not necessarily going to have an ending today given the surprise of China's tariffs when the president was hoping for a $50 billion soybean buy.

Action Alerts PLUS, which Cramer co-manages as a charitable trust, has no positions in the stocks mentioned.