Jim Cramer Explains Why Market Ignores Tariff Deals Amidst Earnings and Fed Meeting

Trade Deals and Market Reaction

• 🎯 Despite recent trade deal wins with Japan and the EU, the market showed a muted response, with major indices only inching up.
• 💡 Jim Cramer explains that while free trade brought down costs, it also led to the deindustrialization of America, impacting a significant portion of the electorate.
• 🔑 The Trump administration's trade policy aimed to bring back jobs and facilitate overseas business, with the belief that America was playing fair while other countries used its market as a dumping ground.

EU Tariff Deal Specifics

• ⚡ The EU deal includes a 15% tariff on European goods, not high enough to stop commerce but significant enough to make a difference.
• 💰 The EU committed to buying $750 billion in US energy products, a move that could potentially box out Russia even after the war in Ukraine ends.
• 🤝 Europe and Japan also made commitments totaling $600 billion and $550 billion respectively in investments, loans, and loan guarantees for US companies, though enforcement mechanisms are unclear.

Reasons for Market Indifference to Tariffs

• 📈 The market is already performing fabulously, with excellent earnings justifying the rally, and the trade deal's impact is blunted by earnings season.
• 🎭 The tariff negotiation process is described as a colossal game of chicken that has evolved into a more rational decision-making process, with markets having already factored in the initial