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Cramer: These are the two numbers that gave Trump confidence to hit China with new tariff threat

Key Points
  • People are saying that U.S. companies that didn't reduce their China exposure yet are the ones at fault, CNBC's Jim Cramer reports.
  • U.S. stocks opened sharply lower as the Washington continues to signal increases in China tariffs on Friday if trade talks don't make progress.
  • "My people I talk to said two numbers determine everything, 3.2% GDP and 3.6% unemployment," Cramer says.
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Cramer: US companies are being told it's their own fault for still being in China

People are saying that American companies that didn't reduce their China exposure after months and months of watching Washington and Beijing clash on trade have only themselves to blame, CNBC's Jim Cramer reported Tuesday.

"I'm also told that they are like, 'Are you kidding me, you had a full year to move out of China. If you didn't move out of China now, it's your own fault,'" Cramer said on "Squawk on the Street. "

"My people I talk to said two numbers determine everything, 3.2% GDP and 3.6% unemployment. That's when things changed. In other words, the Chinese played a little tougher but they overplayed their hand is what my people say. They overplayed their hand given the numbers of what we have" on the economy in the United States, Cramer said.

"I am saying 12:01 Friday will be different," added the "Mad Money" host, referring to the midnight deadline later this week that President Donald Trump set for increases in China tariffs from 10% to 25% if trade talks don't make progress.

U.S. stocks opened sharply lower Tuesday on trade concerns. The Dow Jones Industrial Average on Monday was off as much as 471 points but was able to recoup much of those losses by the close.

Cramer pointed out the continued weakness in Dow stocks that would be most impacted by an escalation in the trade war, including Apple, Caterpillar and Boeing.

"So who's hurting the Dow?" asked Cramer. "Boeing, but they have a lot of orders. Caterpillar, they didn't move out fast enough. Apple, who knows what their game is."

Correction: Apple shares fell Monday. An earlier version misstated their move.