Jim Cramer Says Trump Is 'Distorting Pretty Much Everything' And That's Making It Difficult To Value Stocks: 'People Would Just Rather Be Short'

Jim Cramer warned that President Donald Trump‘s unpredictable trade policies are distorting stock valuations and emboldening short sellers who expect daily market declines.

What Happened: CNBC’s “Mad Money” host said Trump’s tariff threats and confrontational global approach are “continually confounding traders and investors alike,” making accurate stock pricing nearly impossible.

The market uncertainty coincides with deteriorating economic fundamentals. China’s manufacturing activity crashed to its lowest level since September 2022, with the Caixin PMI dropping to 48.3 in May from 50.4 in April—the first contraction in eight months.

New orders fell at their fastest pace in over two years, while U.S. manufacturing also contracted, with the ISM PMI slipping to 48.5%.

Cramer noted markets have been opening lower recently as traders anticipate Trump’s abrupt statements about trade, China, or major stocks like Apple Inc. AAPL and Nvidia Corp. NVDA.

Why It Matters: The administration has reportedly set a July 8 deadline for trade deals, demanding countries submit their best offers by Wednesday as Trump’s 90-day tariff pause expires.

Cramer argued Trump has “almost single-handedly revived the short-selling business,” with hedge funds heavily shorting stocks like Nvidia and CoreWeave Inc CRWV, confident they can profit from Trump-induced volatility. While short sellers aren’t “in charge,” they possess “a lot of firepower and conviction,” believing they can’t lose with Trump in the White House.

While short sellers aren’t “in charge,” they possess “a lot of firepower and conviction,” believing they can’t lose with Trump in the White House, Cramer noted.

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