Post Views: 3
The United States and China agreed on Monday to temporarily halt the majority of tariffs on each other’s goods — a development that bodes, particularly, well for the future of four Club stocks. The 90-day pause, which takes effect Wednesday, reduces “reciprocal” levies from 125% to 10%. However, the effective rate on China will be 30% because the U.S.-imposed tariff of 20% for fentanyl trafficking will remain. Treasury Secretary Scott Bessent told CNBC on Monday that he expects the two sides to continue talks in the coming weeks. The breakthrough follows a series of aggressive trade measures initiated by President Donald Trump that jolted financial markets and escalated recession fears. The White House previously announced tariffs up to 145% on Chinese imports, causing Beijing to retaliate. Monday’s trade announcement signals an easing of geopolitical tensions between the world’s two largest economies. Jim outlined four stocks in the Club’s 29-name portfolio that will benefit the most. AVGO YTD mountain Broadcom (AVGO) year-to-date performance At the top of the list is Broadcom. The stock, which soared more than 5.5% on Monday, has had a volatile year. Shares are down nearly 6% in 2025 versus the S & P 500′ s less than 1% decline over the same period. Tariffs have spooked investors because they threaten the company’s substantial China business, which accounted for 20% of its overall revenue last year. Concerns about cooling artificial intelligence spending have dampened sentiment around Broadcom’s custom chip business, too. Jim described Broadcom as “the biggest winner” of reduced tensions between the U.S. and China. He believes it “can continue to go higher.” During Monday’s Morning Meeting , Jim added, “That stock is coming all the way back. I know at $180 and $170 it was really, really touch and go, but now it’s nicely over $200.” NVDA YTD mountain Nvidia (NVDA) year-to-date performance The second is Nvidia. Shares were up nearly 5% on Monday’s news. “I think it’s breaking out,” Jim said. “A lot of people who were in Nvidia got out of Nvidia, and the people who are left are real hardcore Nvidians. I like that.” In April, Jim retired his long-held “own, don’t trade” stance on Nvidia due to Trump’s aggressive moves, which included a new licensing requirement for its dumbed-down China-specific H20 chip that resulted in a $5.5 billion inventory charge. That prompted us to sell some shares. Better relations with China would improve Nvidia sentiment because China remains a huge market for the chipmaker, which has become an even tougher to serve during the trade feud. AMZN YTD mountain Amazon.com (AMZN) year-to-date performance Then, there’s Amazon. The stock rose nearly 8% on Monday. The e-commerce and cloud giant will be able to grab more retailer share from Chinese discounters like Temu and Shein following recent tariff developments. On Friday, the Trump administration ended de minimis exemptions on Chinese goods, which had given U.S. duty free access for low-value shipments that are often exploited by these e-commerce firms. With that loophole gone, and no mention in Monday’s trade deal, Temu and Shein customers may turn to Amazon’s Haul store instead. That’s the company’s ultra-low-cost retail platform that sells home goods, apparel, and other products for $20 or less. In turn, Jim described Amazon as being in a “good situation” right now. AAPL YTD mountain Apple (AAPL) year-to-date perfomance Finally, there’s Apple. Shares jumped 6% on Monday. The tech behemoth benefits from better relations with China because of its huge exposure there. Not only is China Apple’s second-largest market by sales, but also the majority of its products are manufactured there. Higher levies and a shift in production in other countries could force Apple to raise the prices on its devices, potentially hurting demand. However, the Wall Street Journal reported that Apple is still weighing price increases for its fall iPhone lineup. Apple’s China woes were a key reason why we removed our “own, don’t trade” label on the stock, along with Nvidia, last month. The Club also sold some shares as a result. “We did our trimming of Apple and Nvidia,” Jim added. “We don’t need to do any more trimming.” Additionally, Jim said Apple would be at the top of this list of beneficiaries if it weren’t for its own separate set of problems. There’s a big question mark, for example, around Apple’s high-margin services business after the firm’s recent quarterly earnings report. Plus, Google’s search business, from which Apple derives significant revenue, is another risk after Services chief Eddie Cue said last week that Google searches on devices have declined. Still, Jim said, “Obviously, we want to stay with Apple.” (Jim Cramer’s Charitable Trust is long AVGO, APPL, NVDA, AMZN. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
President Donald Trump takes questions from the media following the swearing-in ceremony for David Purdue as ambassador to China at The White House on May 7, 2025 in Washington, D.C.
Ricky Carioti | The Washington Post | Getty Images
The United States and China agreed on Monday to temporarily halt the majority of tariffs on each other’s goods — a development that bodes, particularly, well for the future of four Club stocks.
