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American TV host and market commentator Jim Cramer has warned that the United States could face a market crash reminiscent of the infamous “Black Monday” of 1987 if President Donald Trump does not reconsider his sweeping tariff plan.
Cramer highlighted the severity of the 1987 market collapse, which saw the Dow Jones Industrial Average plummet by 22.6% in a single trading session. Speaking on his show, he drew parallels between the current market conditions and the historic downturn, cautioning that the market could be on the brink of another devastating fall.
“If the president doesn’t try to reach out and reward these countries and companies that play by the rules, then the 1987 scenario… the one where we went down three days and then down 22% on Monday, has the most cogency,” Cramer stated on Saturday. “We will not have to wait too long to know. We will know it by Monday.”
Trump’s Tariff Announcement Sparks Global Concern
On Wednesday, President Trump stunned the global economy by announcing a 10% blanket tariff on all imports to the United States, with even steeper levies scheduled to take effect on April 9 against major exporters such as China, the European Union, Japan, and Vietnam.
China responded swiftly, imposing retaliatory tariffs in response to Trump’s measures. The fallout was immediate, with the Dow Jones plunging 3,910 points over the following two days—marking the worst two-day loss since the COVID-19 pandemic.
The broader market also took a significant hit. The S&P 500 declined nearly 6%, while the tech-heavy Nasdaq recorded a similar drop. The total market losses amounted to a staggering $6.6 trillion in erased value.
Cramer Shifts Stance on Trump’s Economic Strategy, Forecasts Black Monday
Although Cramer had initially backed Trump’s tariff strategy, the dramatic downturn has led him to reconsider his support.
“If President Trump stays intransigent and does nothing to ameliorate the damage that I saw these last few days, I’m not going to be constructive here,” Cramer declared.
He also expressed concern over potential retaliatory measures from Europe, particularly against major U.S. technology companies. “And if Europe moves against our fabulous tech companies next week, then I will be furious,” he added.
Torsten Slok, chief economist at Apollo, echoed Cramer’s concerns, warning that a prolonged period of high tariffs could plunge the U.S. and global economies into a recession.
“If these levels of tariffs stay in place for several months and other countries retaliate, it will cause a recession in the U.S. and the rest of the world,” Slok cautioned on Friday.
Treasury Secretary Downplays Black Monday Fears
Despite mounting warnings from economists and market analysts, Treasury Secretary Scott Bessent dismissed the notion that the economy was inevitably heading toward a recession.
“There doesn’t have to be a recession. Who knows how the market is going to react in a day, in a week. We’re building the long term,” Bessent, a former hedge fund manager, stated on NBC News’ “Meet the Press.”
Following Trump’s tariff announcement, U.S. markets suffered their worst two-day performance in years. The S&P 500 ended the week with a 6% loss—its worst since the 2020 pandemic-driven crash. The Dow Jones and Nasdaq also saw steep declines, dropping 5.5% and 5.8%, respectively.
The Dow Jones took a particularly severe hit, falling 1,679 points on Thursday and an additional 2,231 points on Friday—marking the most significant two-day decline since March 2020.
Global markets also suffered, with financial instability rippling through Europe, Asia, and India.
Cramer’s Historical Perspective on Market Crashes
Despite the alarming market conditions, Cramer noted that strong job numbers in the U.S. could mitigate the risk of a full-scale recession.
“It makes it less likely a crash will necessarily lead to a recession,” he stated.
Reflecting on his experience during previous market crises, Cramer added, “I will contain my anger, but only because I lived through ’87 and, in the end, I came out okay. I was in cash for the crash. I know what this feels like.”
Cramer has made notable economic predictions in the past, including during the dot-com boom of 2000 and the global financial crisis of 2007. However, his track record has been mixed—he faced criticism during the 2007–2008 crisis for recommending investments in companies like Bear Stearns, Merrill Lynch, Morgan Stanley, Wachovia, and Lehman Brothers before their collapses.
Cramer’s Social Media Warnings
Cramer took to X (formerly Twitter) to voice his concerns over the current market volatility.
“It’s tough to build a new, weaker, world order on the fly. Frantically trying to do it but don’t see anything yet that takes the October ’87 scenario off the table yet. Those who bottom-fished are sleeping with the fishes… so far,” he wrote.
In another post, he recalled his experience during the 1987 crash: “Look, I don’t want a repeat of ’87, of course. But I traded during that period and remember each day well… We knew to sell… and we are proud we did. But we felt like idiots because the week BEFORE the crash was so bad and we were late to sell.”
What is Black Monday? A Grim Reminder of Market Vulnerability
Cramer’s warning has gone viral on social media, sparking widespread debate about the possibility of another Black Monday event. The term “Black Monday” is trending on X as investors and analysts reflect on the catastrophic market collapse of October 19, 1987.
On that day, the Dow Jones Industrial Average recorded its worst single-day percentage drop in history—22.6%—a loss that remains unparalleled. According to the Federal Reserve’s historical records, the crash originated in Hong Kong before spreading across Asia, Europe, and finally reaching the United States.
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