Black Monday Approaching: Jim Cramer Claims Trump Tariffs Leading to Recession
Wall Street is on edge, and Jim Cramer has added fuel to the fire. The CNBC anchor conjured memories of the 1987 Black Monday, linking the chaos to Trump’s “Liberation Day” tariffs. Cramer cautioned that the markets could falter in unprecedented ways unless there are changes.
Regardless of one’s opinion on Cramer’s history, even a broken clock tells the correct time twice daily.
Is There a Connection to Black Monday?
Even though Black Monday took place in the 1980s, analysts refer to the Smoot-Hawley Act of 1930 as an early historical example.
That Black Thursday began with a jolt, as stocks plummeted 11% before declining further in the subsequent days. Investors were left sifting through the debris, grieving over a trading market that lost 25% of its value within 48 hours. What ensued was one of the darkest economic periods, leading to a worldwide depression.
The Smoot-Hawley Act of 1930 exacerbated the situation, increasing tariffs when nations were already in distress.
Black Monday, which occurred 50 years after the Depression, mirrors today’s scenario.
The 1987 crash was devastating, wiping out 22.6% of the Dow in a single day, marking the most significant drop in U.S. history. Trump’s Liberation Day—which involved a sweeping 10% import tariff, along with specific penalties reaching up to 54% on major trading partners like China and India—has already rattled markets. By the end of the week, the losses were vividly evident:
- p]:inline” style=”border: 0px solid #e0e0e1; –tw-border-spacing-x: 0; –tw-border-spacing-y: 0; –tw-translate-x: 0; –tw-translate-y: 0; –tw-rotate: 0; –tw-skew-x: 0; –tw-skew-y: 0; –tw-scale-x: 1; –tw-scale-y: 1; –tw-scroll-snap-strictness: proximity; –tw-ring-offset-width: 0px; –tw-ring-offset-color: #fff; –tw-ring-offset-shadow: 0 0 #0000; –tw-ring-shadow: 0 0 #0000; –tw-shadow: 0 0 #0000; –tw-shadow-colored: 0 0 #0000;”>The Dow plunged over 5%, reflecting rising investor anxiety.
- Cramer and other experts worry this could signal a precursor to a more significant crypto market incident if corrective action isn’t taken promptly.
We’ve Been in a Recession; The Biden Administration Altered the Definition
The point is that individuals like Jim Cramer are mistaken. We HAVE experienced a recession, and we are entering another irrespective of who assumes the presidency. The gaslighting is amusing.
Under Biden, GDP faced a decline for two consecutive quarters in ‘22, which typically qualifies as a textbook recession. However, the White House & NBER avoided labeling it. Oh, and this also happened: pic.twitter.com/Z0SjbrAzbU
— David Nage
(@DavidNage) April 4, 2025In 2022, the Biden administration modified the definition of what constitutes a recession. For many years, two consecutive quarters of declining GDP were the standard for identifying a downturn—clear, straightforward, and harsh.
To evade negative press, they revised the definition to state that GDP alone isn’t sufficient to declare a recession, incorporating factors such as labor trading market conditions, consumer spending, and corporate investment into the evaluation.
Alright, If a Black Monday Scenario Occurs, What Should We Buy?
Canned goods, a firearm, and ammo? Jokes aside, this creates a clear buying opportunity to invest more in BTC and leading layer-one alternatives like Sui, Solana, and Polkadot.
Cramer’s mention of a “Black Monday 2.0” remains hypothetical, but the warning signs are present. What should give you pause is that the same individuals who are wrong about everything are the loudest critics of the tariffs. Furthermore, much of this is already reflected in the pricing.
EXPLORE: XRP Price Jumps 11% Following SEC Crypto Unit News on XRP ETF Progress
Join The 99Bitcoins News Discord Here For The Latest Market Insights
Key Insights
- Wall Street is uneasy, and Jim Cramer has ignited alarm bells calling for Black Monday 2.0.
- Regardless of what you think about Cramer’s track ledger, even a broken clock is accurate twice a day.
- Black Monday, which happened 50 years after the Depression, shows a similar trend to what we’re seeing today.
The post Black Monday Incoming: Jim Cramer Claims Trump Tariffs Prompting Recession first appeared on 99Bitcoins.
