U.S.-China tensions over trade may have abated for now, but with China ready to escalate at any moment, CNBC's Jim Cramer wanted investors to be prepared for potential pain.
While shares of Caterpillar have more than tripled since their early 2016 lows and business at the construction equipment giant is booming, Cramer warned that it does a lot of business in China.
And despite the stock's rally after China President Xi Jinping struck a more conciliatory tone on trade in a recent speech, Cramer saw Caterpillar as an obvious target for Chinese retaliation.
"You should swap out of CAT and swap into United Rentals, URI, the big domestic machinery rental play," he recommended. "United Rentals gives you the same great earth-moving and construction equipment exposure that Caterpillar does without any of the China related risk."
Here's why Cramer would buy United Rentals' stock over Caterpillar's: