Don't underestimate the effects of trade on the stock market, Jim Cramer told his Mad Money viewers Monday. Remove the likelihood of a trade war, as we saw today, and stocks will soar, Cramer said, and not just the ones you'd think.

Investors have been fretting the possibility of an all-out trade war with China for weeks, but if today's talks of a truce are for real, there will be a lot of winners, Cramer said. (Let's put aside for the moment the question of how long the truce will last.) Of course, the apparel and retail stocks will gain, but so, too, will the rails, with companies like Union Pacific (UNP) hauling a lot of freight from West Coast ports to the rest of the country.

But there are also a lot of uncovered gems that will benefit from more trade with China. Honeywell (HON) , for example, has China as its biggest contributor to earnings. United Technologies (UTX) ranks China as its biggest market for Otis elevators. Meanwhile, companies like 3M (MMM) , Emerson Electric (EMR) and even FedEx (FDX) all win with more goods flowing across borders.

Cramer said he wouldn't count out Starbucks (SBUX) , which is opening a new location in China every 15 hours, or Nike (NKE) or even Kimberly-Clark (KMB) , both of which sell a sizable amount of goods into China.

This rally has as much staying power as the truce, Cramer concluded. If you take the possibility of a trade war off the table, you put higher stock prices on the table.

Over on Real Money, Cramer says there are hints that U.S. companies may get direct access to Chinese markets. Get more of his insights with a free trial subscription to Real Money.

Executive Decision: International Flavors & Fragrances

For his "Executive Decision" segment, Cramer sat down with Andreas Fibig, chairman and CEO of International Flavors & Fragrances Inc.  (IFF) , which saw its shares decline by 10% after it announced the acquisition of rival Frutarom for $7.1 billion.

Fibig explained that while the Frutarom deal will be initially dilutive to shareholders, it will quickly become accretive for several reasons. He said that while IFF has 3,000, mainly large, customers, Frutarom has a complimentary base of over 30,000 smaller ones. The company also has a complimentary geographic footprint that will bring IFF to new parts of the globe.

Beyond those benefits, Fibig said that Frutarom is a leader in all-natural and so-called "clean label" additives that are very important to younger consumers. The cross-selling opportunities will be enormous, he added.

Cramer said he thought the reaction to the downside was overdone and reiterated his buy recommendation on this excellent company.

Cramer and the AAP team talk about Cimarex (XEC) , Nordstrom (JWN) and PayPal (PYPL) . Find out what they're telling their investment club members and get in on the conversation with a free trial subscription to Action Alerts PLUS.

Coming up on this episode of Mad Money: Cramer interviews Strauss Zelnick from Take Two Interactive Software Inc. (TTWO) and Spencer Rascoff of Zillow Group Inc. (Z) . Plus, don't miss the Lightning Round. Which stocks is Cramer bullish on?

Search Jim Cramer's "Mad Money" trading recommendations using our exclusive "Mad Money" Stock Screener.

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At the time of publication, Cramer's Action Alerts PLUS had a position in XEC, JWN, PYPL, HON, MMM, EMR.

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