Cramer reveals a sub-sector of technology that can withstand Trump tariffs

US stocks grappled with weakness this week after President Donald Trump confirmed tariffs on Canada and Mexico.

Trump had proposed a 25% levy on both countries at the start of February.

While the allies had secured a one-month delay to discuss and potentially reach a more permanent solution at the time, the negotiations have seemingly failed as the raised tariffs are now scheduled to go live on March 4.

The US President also confirmed in its recent post on Truth Social that rival China will face an additional 10% tariff from next week as well.

Cramer says cybersecurity is insulated from Trump tariffs

Much of the weakness in the benchmark S&P 500 index this week was related to turmoil in the US tech stocks since they are the most at risk from the new tariffs under the Trump administration.

Why? Because the majority of them rely significantly on Beijing for a component of their supply chains.

Still, there’s one sub-sector of technology that famed investor Jim Cramer sees as insulated from Trump tariffs – and that’s cybersecurity software.

Last night on “Mad Money”, the former hedge fund manager dubbed cybersecurity stocks as the safest picks in the current macro environment as they’re not really exposed to tariffs.

A name within that space that he particularly recommends owning is Crowdstrike Holdings Inc (NASDAQ: CRWD).

Why is Cramer bullish on Crowdstrike stock?

Jim Cramer remains bullish on cybersecurity stocks amidst rising tariffs also because online threat protection is an absolute need of the hour.

He was taken aback from Crowdstrike’s recent annual report that “talked about North Koreans coming into companies, posing as employees, and taking data.”

In the midst of such a big threat, he’s convinced, the demand for cybersecurity solutions, like the ones CRWD offers, could increase exponentially over time, according to the Mad Money host.

“Cyber is the one area that they can’t seem to tax, because there’s nothing to tax,” he said this week on CNBC’s “Squawk on the Street”.

Crowdstrike continues to attract strong demand

On Friday, the company based out of Austin, Texas, was named a leader in managed detection and response by an independent firm.

Cramer is bullish on CRWD shares also for the strength of its financials. In November, the Nasdaq listed firm cited solid demand as it raised its forecast for the full year.

Crowdstrike now sees its revenue falling between $3.92 billion and $3.93 billion on the back of “incredible success with our customer commitment packages.”

Wall Street seems to agree with Jim Cramer on CRWD stock.

The consensus rating on the cybersecurity technology company currently sits at “overweight” with upside to $412 on average that indicates potential for about an 8.0% gain from current levels.