Cramer: Trump's pick Tillerson is a wedge between Germany and US

Tillerson choice is wedge between Germany and US: Cramer

President-elect Donald Trump has caused a rift between Germany and the United States by picking Exxon Mobil Chief Executive Rex Tillerson for secretary of State, CNBC's Jim Cramer said Tuesday.

"Tillerson to me represents a realpolitik choice," Cramer said on "Squawk on the Street."

Tillerson was formally announced as Trump's intended choice for top diplomat on Tuesday. While German Chancellor Angela Merkel didn't say anything, Cramer said, "This is a wedge between Germany and the United States and I think people don't realize that."

The Exxon Mobil CEO has maintained close ties with Russia and was awarded the Order of Friendship by Russian President Vladimir Putin. Exxon Mobil has various projects in Russia that are allowed under American sanctions, which are intended to put economic pressure on Russia over its involvement in Ukraine.

Others, however, have been halted amid the sanctions.

If Tillerson is approved as secretary of State, sanctions on Russia may be slowly repealed, Cramer said. Merkel has said she is in favor of extending sanctions against Russia.

— Reuters contributed to this report.