When stocks reversed course and fell on Friday after President Donald Trump doubled down on his call to place tariffs on Chinese goods, CNBC's Jim Cramer offered investors some advice on how to approach the trade debacle.
"You need to realize the president doesn't want China to talk. He wants China to cave," the "Mad Money" host said. "You should never believe we're going to make a deal with the Chinese unless you're hearing it from an outspoken protectionist like Peter Navarro, the president's top trade advisor."
For now, tariffs and trade news remain the stock market's main drivers, Cramer said. And those who are invested in the stock market need to resist the euphoria brought about by news of resuscitated trade talks.
"Please, let's learn from today," he said. "Don't be taken in the next time Treasury Secretary [Steven] Mnuchin makes it sound like we're making progress with China. Mnuchin's not in charge."
In other words, until the U.S.-China trade spat officially ends, the president will likely use strong economic results to push his hawkish tariff agenda, so investors should be prepared for the associated declines.
With that strategy in mind, Cramer turned to his game plan for the week ahead: