*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)

Share:
More In Politics
Dow, S&P Hit Record Close Amid 'Santa Claus Rally'
Stocks closed mixed on Wednesday, but two indexes - the Dow and the S&P 500 - ended the session with a new record. Akshata Bailkeri, Equity Analyst at Bruderman Asset Management, joins Cheddar News' Closing Bell, where she says there is a consensus for robust consumer spreading in 2022, especially as the Omicron variant is proving to be milder than other COVID-19 strains.
Walmart Draws Ire of Chinese Consumers Over Xinjiang Products
John Quelch, Dean of Miami Herbert Business School, joins Cheddar News' Closing Bell, where he says the retail giant is acting in accordance to President Biden's new law banning goods from China's Xinjiang region. Quelch also elaborates on the importance of China in Walmart's overall strategy.
What to Expect From the Federal Government on Cannabis Legalization in 2022
Cheddar's Chloe Aiello has our cannabis year-in-review, breaking down how several states legalized adult recreational use and greenlit medicinal use in 2021. She noted that while a cannabis legalization and decriminalization bill was introduced in Congress this year, potential FDA involvement in the industry, as well as a 25 percent excise tax, killed any chance the bill had of moving forward. Aiello also speculated that some form of cannabis reform could be rolled out in 2022, as the midterm elections draw closer.
Stocks Close Mostly Lower as S&P Falls From Record
Jim Worden, Chief Investment Officer at Wealth Consulting Group, joins Cheddar News' Closing Bell, where he says the period between Christmas and New Year's is difficult to predict due to a lack of institutional volume, with the Omicron variant adding even more uncertainty on Wall Street.
Gas Prices to Rise in 2022 amid Soaring Demand, Omicron Spread
Prices at the pump this year reached a seven-year high, and a new forecast from GasBuddy shared with CNN predicts that gas prices will only continue to rise in 2022 and that the national average could even reach $4.00 a gallon; however, analysts at GasBuddy say anything could happen when it comes to gas prices in the future, as the pandemic has made it difficult to make any predictions about the economy. Consumer Energy Alliance federal policy advisor Michael Zehr joins Cheddar News' Closing Bell to discuss.
Load More