"Anyone who watched my old pal Larry go off on China knows that if you own shares in the companies that are thought to be dependent on China — and I'm talking about a Boeing, a Caterpillar, United Technologies, Emerson [or] so many others — you've got to be quaking in your wingtips," the "Mad Money" host said.
U.S.-based industrials like these rely on China for business. The Chinese market accounts for roughly 12 percent of Boeing's revenue, 10 percent of Emerson's, 5 percent of Caterpillar's, and 3 percent of United Technologies', according to FactSet.
On July 10, the Trump administration proposed a new wave of tariffs on $200 billion worth of Chinese goods. The list will undergo a two-month review, culminating in hearings on Aug. 20 through 23.
"If you listened to Larry, you wouldn’t want to own a single share of any company that does a ton of business in China because China hasn’t given an inch on trade," Cramer said.
Kudlow added that while officials in the Chinese government seem to want a deal, Chinese President Xi Jinping himself is "holding the game up."
China’s foreign ministry spokesperson Hua Chunying responded to Kudlow's comments on Thursday in a regularly scheduled briefing in Beijing.
“That the relevant United States official unexpectedly distorted the facts and made bogus accusations is shocking and beyond imagination," she said. “The United States' flip-flopping and promise-breaking is recognized globally."
"As far as we know, President Xi, at the moment, does not wish to make a deal," Kudlow told Cramer. "I’d love to be wrong on that. We are waiting for him. The ball is in his court. And the tit-for-tat business, which is nobody’s favorite path, but nonetheless — they can end that this afternoon ... by providing a more satisfactory approach."
On July 6, U.S. authorities placed $34 billion worth of tariffs on Chinese products after trade talks between the two nations reportedly ended without a settlement. China quickly retaliated with comparable tariffs of its own, accusing the United States of starting the "largest trade war in economic history."