Jim Cramer: Larry Kudlow ‘will neutralize a lot of the haters’

Key Points
  • Larry Kudlow may have to embrace the Trump administration's aggressive stance on China if he hopes to get along with others in the president's circle, CNBC's Jim Cramer says.
  • Cramer adds he expects the direction of President Donald Trump's new circle of advisors involves "fighting back on China."
Cramer: Kudlow will 'neutralize the haters'

Larry Kudlow will be a much need addition to President Donald Trump's White House, CNBC's said Wednesday.

The "Mad Money" host, who worked with Kudlow on the CNBC show "Kudlow and Cramer," said his former co-host had a way of arguing that made you like him even if you don't agree.

"What will happen is, he will neutralize a lot of the haters," Cramer said on "Power Lunch."

On Wednesday, sources told CNBC that President Donald Trump plans to name Kudlow, a CNBC senior contributor and longtime economist, as his top economic advisor. Cramer reported earlier this week that Kudlow was the leading contender to succeed Gary Cohn as the top White House economic advisor.

Larry Kudlow
Scott Mlyn | CNBC

Cramer said Wednesday Kudlow thought it was important to win people over with kindness.

"That is something that the president, frankly, needs," he said.

Kudlow is "pro-growth. He's pro American. He's a patriot," Cramer added. "He is very difficult to take on when he disagrees with you because he is a rigorous, rigorous man of great argument. But you finish in the end you say, 'you know what I learned something, he's made some good points.'"

China stance

However, Kudlow may have to adopt the Trump administration's aggressive stance on China if he hopes to get along with others in the president's circle, Cramer said.

Kudlow has warmed up a little to Trump's tariffs on aluminum and steel in regard to China, Cramer said earlier Wednesday on "Fast Money Halftime Report." Kudlow previously called Trump's tariffs are a "bad omen" and said they could cause a "major calamity."

"I think Larry has to embrace that [China] feud in order to get along with other people who surround the president," Cramer said, adding that he expects the direction of Trump's new circle to involve "fighting back on China."

Cramer: Kudlow may have to embrace Trump’s aggressive stance on China

On Tuesday, a source told CNBC that Trump is considering a trade package including indefinite tariffs, investment restrictions and possible visa restrictions on Chinese travelers.

Cramer said Tuesday that Trump's plan to nominate CIA Director Mike Pompeo to be secretary of State sends a startling message to China.

Still, Kudlow, who has previously advocated for free trade, is a win for the stock market, Cramer, contended.

"But ... the markets won if you want to believe that the markets need free and unfettered trade without any regard to who works here and what industries are being hurt," said Cramer.