• CNBC's Jim Cramer said U.S. automakers like Ford and General Motors will benefit from the Biden administration's tariff increase on electric vehicles imported from China.
• "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.

CNBC's Jim Cramer said investors should look past the "meme stock" wave on Wall Street and instead turn attention to the Biden administration's Tuesday announcement that it would issue stiff tariffs on Chinese imports, which he thinks will especially benefit U.S. automakers.

"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. "I like this policy, but even if you hate it, it's a clear giveaway to Ford and GM, and you got to cash in on a giveaway when you get it."

Cramer noted that there has been widespread fear across the auto industry that American companies will be crushed when less expensive Chinese cars flood the market. But with Biden increasing tariffs on Chinese electric vehicles from 25% to 100% this year, automakers like Ford Motor 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 and syringes. Cramer noted that there are a host of other stocks that will also benefit like First Solar, Texas Instruments, Owens & Minor and Becton Dickinson.

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. "Whenever China's been allowed to dump merchandise, they've destroyed pricing and destroyed companies. That won't happen here now, not with these tariffs."

Ford and GM did not respond immediately to a request for comment.

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Disclaimer The CNBC Investing Club Charitable Trust holds shares of Ford.

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