President Donald Trump’s tariffs on Chinese imports is hurting an iconic American company based in Columbus, Indiana, which is the hometown of Vice President Mike Pence. A representative of Cummins Manufacturing went on MSNBC to raise the alarm of how much the president’s trade war is costing their business.
Speaking with MSNBC’s Vaughn Hillyard on Friday, Tracy Embree, president of Cummins’ components division said Trump’s tariffs on steel and aluminum have had a “pretty significant impact on us with some of our engines, specifically a piece called blocks and head.”
Cummins, the world’s largest producer of diesel engines, has “no source in the U.S. for those parts,” Embree explained. “Right now capacity is not available, with the exception of suppliers in China.”
The total financial impact on the company so far in 2018 is $100 million, which adds up to “$200 million annually,” according to Embree.
Embree said Cummins is “aligned with the goals of the administration on the creation of strong trade agreements that are fair,” but that “tariffs are not the right answer to accomplish that.”
Visibly frustrated, Embree added: “In fact, tariffs are harmful, tariffs are a tax, and that affects American workers, affects American companies.”
Following her interview, Embree tweeted that international trade “has been the single biggest contributor to growth” for Cummins “for more than a decade.”
Spent part of the afternoon with @VaughnHillyard from @NBCNews talking about int’l trade and how it’s been the single biggest contributor to growth for @Cummins for more than a decade. pic.twitter.com/TE9D8RCk0k
— Tracy Embree (@TracyEmbree) September 20, 2018
As governor of Indiana, Pence cut taxes and set up trade deals with China specifically to benefit Cummins, which has grown into a $20 billion company.
Since Trump and Pence took office, however, Cummins has expressed concern over the administration’s trade policies.
Mike Pence's hometown is taking a hit due to Trump's tariffs.
"I'm very worried," said Tom Linebarger, the head of Cummins, the biggest employer in Columbus, Indiana, who warns of job losses ahead because thousands of jobs in the area depend on trade.https://t.co/m0GW3Lrrfa
— Kyle Griffin (@kylegriffin1) July 22, 2018
In July, Cummins CEO Tom Linebarger told The Washington Post that he was “very worried” about potential job losses due to the company’s dependence on Chinese exports.