Rep. Emanuel Cleaver: Harley's Tariff Pain a Bad Sign for U.S. Economy
*By Christian Smith*
Democratic Congressman Emanuel Cleaver says that Harley-Davidson's decision to move some of its motorcycle production abroad is just the first sign of a slowdown in the American economy and that President Trump's tariffs are to blame.
"The markets gave (President Trump) some indication that the direction he is going with these tariffs is going to be an impediment for the continued growth for the U.S. economy," Rep. Cleaver, who represents Missouri's Fifth District, said in an interview on Cheddar Tuesday.
"I think we're going to end up seeing that (with) the combination of this trillion-dollar tax cut and the tariffs, the United States economy, which has been humming on all cylinders for the last seven years frankly, is going to cool down."
The Milwaukee-based motorcycle manufacturer announced Monday that it would [move manufacturing](https://www.nytimes.com/2018/06/25/business/harley-davidson-us-eu-tariffs.html) for some of its motorcycles destined for sale abroad to its existing international facilities. The company cited recent tariffs implemented by the European Union in retaliation to tariffs imposed by President Trump on the EU.
Harley-Davidson said that the tariffs would increase the cost of its motorcycles by about $2,200 each if manufactured in and shipped from the U.S. The EU accounted for about 16.4 percent of the company's global sales in 2017.
The iconic American motorcycle company had already announced plans to [close is Kansas City plant](https://www.usatoday.com/story/money/cars/2018/01/30/harley-davidson-kansas-city-plant-motorcycle-sales-fall/1078008001/) in January due to four straight years of slowing sales. It initially planned to move production to its York, Penn., plant. The company still plans to move forward with the consolidation in addition to shifting some production to international facilities.
Altogether, 800 jobs will be eliminated with the Kansas City plant closes, in 2019.
President Trump fired back at the company with a barrage of tweets on Tuesday, threatening to tax Harley-Davidson "like never before" if the company followed through with its plan to move some operations abroad. The president added that any shift in production would be "the beginning of the end."
Harley-Davidson's decision to close its Kansas City plant hits especially close to home for Rep. Cleaver who was mayor of Kansas City in the early 1990s when the city beat out 100 other competitors to win the plant. City's leaders won out by offering Harley-Davidson a combination of incentives including tax breaks and a $3 million piece of equipment the plant required to comply with Missouri state air quality regulations.
"We're going to end up with a vacant building that the taxpayers of Kansas City put money into," Cleaver said. "It could conceivably be years before we are able to attract another business or another company to take that facility."
Cleaver added that the president needs to be more aware of the reality that companies will do whatever they need to do to improve their bottom lines ー in this case shipping hundreds of jobs overseas.
"It is a complicated issue, and it's not something you can do with a tweet," Cleaver said.
For the full segment, [click here.](https://cheddar.com/videos/trump-takes-aim-at-harley-davidson)
The PGA has suspended 17 golfers, including Phil Mickelson and Dustin Johnson, who are competing in a Saudi-backed golf event outside of London. In a memo, commissioner Jay Monahan said "these players have made their choice for their own financial-based reasons", announcing they are ineligible to participate on the PGA tour or any other tours it sanctions. Hugh Kellenberger, Senior Managing Editor at the Athletic, breaks down the controversy, and what might happen next.
U.S. stocks closed Friday at session lows after May CPI data showed inflation in the U.S. has not peaked and is still rising rapidly. For the week, the S&P fell 5.06%, the Dow lost 4.58%, and the Nasdaq dropped 5.60%, marking the worst week since January for all three major indexes. Mike Zigmont, Head of Trading and Research at Harvest Volatility Management, joins Cheddar News' Closing Bell to discuss.
Benefits brokerage, Nava Benefits, raised $40 million in a Series B round. Nava says it's on a mission to fix healthcare, one benefits plan at a time. The startup is working to bring benefits to small business that are normally available to only Fortune 500 companies. Brandon Weber, Co-Founder and CEO of Nava Benefits, joined Cheddar News' Closing Bell to discuss.
The House Select Committee investigating the Jan. 6 riots on Capitol Hill held its first primetime hearing on Thursday. Cheddar News speaks with legal analyst Tracy Pearson, who breaks down the biggest takeaways.
Fuel and oil prices have risen almost 17 percent since May, making the national gas prices reach nearly $5 a gallon. Andrew Lipow from consulting firm Lipow Oil Associates joined Cheddar News to discuss the future of gas prices. "The biggest issue on the oil market is really events that are beyond our control, which is what is happening over in Europe," he said, regarding the ongoing Russia Ukraine war. Lipow also said he predicted gas prices to hit $5.05 and that he's focused on the Biden administration's overtures in repairing a relationship with Saudi Arabia.
March For Our Lives will be returning this weekend to Washington, DC, in the wake of the recent mass shooting seen throughout the country. Marchers include Yolanda Renee King, the only granddaughter of Martin Luther King Jr. She joined Cheddar News to discuss the importance of the march and activism in general. "I just think that it's so important to have these rallies because we need to demand to our leaders and politicians that they pass legislation and that and we actually need to see action," she said.
Erika Alexander and Whitney Dow, directors of 'The Big Payback,' join Cheddar News to discuss their new film, 'The Big Payback.' It premieres Saturday, June 11 at the Tribeca Festival.
President Biden proposed a new rule that would add 500,000 chargers for electric vehicles nationwide. The proposal comes amid the rapid shift to EVs with dozens of automakers announcing plans for all-electric fleets within the next decade. But with the new surge will the U.S. have the proper infrastructure to keep up? Scott Painter, founder and CEO of Autonomy.com joined Cheddar's Opening Bell to discuss. "I really think the idea of standardization is a big deal. Standardization certainly makes it much better for everybody to be able to get a charge when they need one," he said.
The House select committee investigating the January 6th riots on Capitol Hill is opening its landmark series of public hearings. Cheddar News speaks with Mike Sozan, senior fellow at the Center for American Progress who explains how to follow the hearings and what to expect.
