The stock market isn't even lower on trade concerns because investors hope President Donald Trump gets lucky on China, CNBC Jim Cramer said Tuesday.

"We're in suspended animation here," Cramer said on "Squawk on the Street," adding investors are finding it difficult to commit capital to stocks such as industrials without knowing the conclusion of the Trump administration talks with China later this week.

The "Mad Money" host said earlier this week, "The world has turned, our market has turned on anything industrial believing that there is going to be a dramatic slowdown because of our trade war."

Cramer added on Tuesday, "I think people are starting to fear the president gets lucky and gets China," meaning if the U.S. and China don't end up in a trade war sellers of the market might get caught on the wrong side of the trade.

Treasury Secretary Steve Mnuchin told Fox Business on Monday he is "cautiously optimistic" about an upcoming meeting with officials from the world's second-largest economy, adding the Trump administration is looking to have a frank conversation on trade.