"Not only does this tariff protect American car companies from cheap Chinese electric vehicles, it also means that their regular vehicles — their regular cars and trucks and hybrids — will benefit, too," he said.
But with Biden increasing tariffs on Chinese electric vehicles from 25% to 100% this year, automakers like Ford and General Motors have less to worry about.
Biden will also raise tariffs on semiconductors, solar cells, masks and medical gloves as well as issue first-time tariffs on medical needles on syringes.
Cramer also said Ford shares can go higher if the company can "curtail the immense losses in electric vehicles," which will be easier to do with these new tariffs.
"The chief reason GM and Ford stocks sell at the bottom of the S&P 500 barrel is because of this existential Chinese threat," he said.
Persons:
CNBC's Jim Cramer, Cramer, Biden, Becton Dickinson, Ford, China's
Organizations:
Biden, Ford, GM, General Motors, Texas Instruments, Owens, Minor