American market expert Jim Cramer has issued a serious warning, comparing the current market situation to the 1987 “Black Monday” crash. He believes the recent global tariffs introduced by President Donald Trump could trigger a similar financial meltdown unless quick diplomatic action is taken.
Cramer urged the President to reach out to countries that haven’t retaliated with their own tariffs and offer incentives. He stressed that ignoring these opportunities could lead to a market collapse similar to 1987, when stocks fell dramatically over a few days.
Markets have already reacted sharply to the 10% tariff announcement. The S&P 500 saw its worst drop since 2020, falling 6%, while the Dow Jones dropped over 3,900 points across two days. These declines weren’t limited to the US—stock markets in Europe and Asia also suffered major losses.
Cramer warned that a bigger crash could come as soon as Monday if the situation isn’t handled properly. However, he did mention that the strong US job market could cushion the blow and possibly prevent a full-blown recession.
While Cramer’s bold predictions draw attention, his track record has been mixed, with past calls during the 2007–08 crisis being questioned. Still, his personal experience during the 1987 crash adds weight to his concern.
He concluded by recalling how he stayed in cash during that infamous crash and survived it—offering a personal perspective on how severe things could get if trade tensions escalate further.
