CNN "CNN Newsroom" - Transcript: Interview with Rep. Warren Davidson (R)

Interview

BREAK IN TRANSCRIPT

HARLOW: Thank you, Romans. Appreciate it very, very much.

Joining me now, Republican Congressman Warren Davidson from Ohio. He's a member of the House Freedom Caucus, also sits on the Financial Services Committee.

It's nice to have you. Thanks for being with me.

REP. WARREN DAVIDSON (R), OHIO: Thank you, Poppy.

HARLOW: What's your reaction to the president's threats to Harley- Davidson this morning?

DAVIDSON: I don't know. I don't know if he's a shareholder or a board director so I don't think he's going to take over the company.

HARLOW: Elaborate on that for me. Do you like what you're seeing? Ben Sasse certainly doesn't. Ron Johnson of Wisconsin --

DAVIDSON: I think it's pretty alarming. I mean --

HARLOW: -- certainly doesn't. It's alarming?

DAVIDSON: Yes, I think it's alarming. I mean, you know, Harley- Davidson has got to look out for the best interests of Harley-Davidson and their shareholders.

[10:05:05] I love riding my Harley. Lots of Americans do. I don't think that's going to change. I think they're going to keep making the bikes they sell in America in America and, you know, there is a lot of demand for their bike around the world and they have a huge opportunity to grow that market.

My hope is they can do it from the United States of America. Tax reform was a big step in that direction. But there are other factors.

HARLOW: Yes.

DAVIDSON: And this plan isn't something that just spun off as tariffs. You couldn't spin this off that fast, and it may be a contributing factor, but I think they're not going to make something this permanent over a temporary tariff.

HARLOW: Well, who's to say it's temporary? I mean, Christine Romans just went through all the numbers here and how much it would cost them to keep the production here with the new E.U. tariffs that are a response to the president's tariffs. Republican Senator Ben Sasse says the problem isn't that Harley is unpatriotic, it is that tariffs are stupid. They're a tax increase on Americans, they don't work. Is Ben Sasse right? Did the president overshoot here? Did he miscalculate?

DAVIDSON: Well, I agree, look, before I came into Congress just two years ago I was in manufacturing. I spent the past 15 years on the receiving end of bad trade policy. So I think the president is exactly right to target bad trade practices. We have been on the receiving end of bad trade practices.

I do disagree with some of the tactics and frankly I feel like the president has been given bad advice by some of his advisers.

HARLOW: Like who?

DAVIDSON: I think Peter Navarro is steering him in a wrong direction. And you see that coming to a head in the administration right now between, you know, Secretary Mnuchin and Peter Navarro. And prior to that, that was a big part of what former director of National Economic Policy resigned, Gary Cohn.

HARLOW: You know, it is the key reason, right? I mean, I'm interested also in what role you think Congress has in this because you tweeted something interesting on June 10th. You talked about the power that's been given to the presidency in terms of tariffs. And so unilaterally making these decisions as we've seen from the Trump White House. And you said, quote, Congress should quit ducking their duty on this issue and many more.

To me that sounds like you agree with Republican Senator Bob Corker that Congress should pass legislation that would tie the president's hands on unilaterally being able to impose tariffs like this. Am I reading that right?

DAVIDSON: Well, similarly, I differ from Bob Corker because I don't really want to take actions that undermine the president's effectiveness in his ongoing trade negotiations. But over the years, frankly, since the 16th Amendment passed, which created the income tax, Congress has progressively ceded its authorities on tariffs. It's one of the enumerated powers Congress is given. A tariff is a tax.

And so if Congress has had that authority and has given nearly all that authority to the presidency. So President Trump is acting entirely within his authority, legal authority, and so once we get our deals right, we've made them more productive and effective, we've improved them, I really feel like it's important to pass this bill. The Global Trade Accountability Act which I got the lead bill in the House, and Mike Lee has got the lead bill in the Senate.

HARLOW: So Congress should have a say, bottom line, Congress should have a say on these tariffs?

DAVIDSON: Absolutely.

HARLOW: OK.

DAVIDSON: And when you look at why, if you look at there is some grades of steel that are no longer made in the United States, for example, there is over 20,000 companies that have petitioned for exceptions to these tariffs because their components can't be made with U.S.-based steel and because there is no tariff on the components they make.

HARLOW: Right.

DAVIDSON: Like whether that's nails or welding wire, for example, they're losing total market share. I mean, they're losing half their business quickly. They need these exceptions approved. But there is only six people in Commerce working on that. So we're trying to work to make sure we get more people available. If we are going to go down this path, that we at least provide relief. We hope the steel production comes back, but right now we know there are American companies that are being harmed by the existing tariffs.

HARLOW: Yes. Yes, we just talked to the representative from one, Mid Continent Nail in Missouri that might shutter because of these tariffs.

Congressman, we're out of time because we have to get to breaking news out of the Supreme Court. But I appreciate you being here this morning.

BREAK IN TRANSCRIPT

Source