Top economic adviser Gary Cohn leaves White House in wake of tariff rift

President Donald Trump's top economic ad...

Posted: Mar 6, 2018 6:32 PM
Updated: Mar 6, 2018 6:32 PM

President Donald Trump's top economic adviser Gary Cohn is resigning, the White House announced on Tuesday.

Cohn, who had been rumored just weeks ago as a potential next chief of staff, will leave the White House in the wake of his fierce disagreement with the President's decision to impose tariffs on steel and aluminum imports. Cohn is expected to leave in the coming weeks, the White House said.

"Gary has been my chief economic adviser and did a superb job in driving our agenda, helping to deliver historic tax cuts and reforms and unleashing the American economy once again. He is a rare talent, and I thank him for his dedicated service to the American people," Trump said in a statement.

Cohn's resignation sounded alarm bells in establishment circles in Washington and on Wall Street, where many viewed the former Goldman Sachs executive as a steadying influence on economic policy inside the Trump White House. His departure, combined with Trump's recent moves to recommit himself to his nationalist trade agenda, raised questions about the direction of the Trump administration and sent Dow futures plummeting 300 points.

"Wall Street won't be happy," said a senior Republican who has worked both at the White House and in finance. "We knew he was hanging in by a thread, but it is terrible news."

The latest shake-up also amplified the chaos that has consumed the White House in recent weeks, with Cohn becoming just the latest in a series of high-profile resignations in recent weeks. It was not immediately clear who would succeed him as director of the White House's National Economic Council.

The New York Times first reported the news.

Cohn's position with Trump has been tenuous since last summer, when Cohn rebuked the President over his comments about a white supremacist rally in Charlottesville, Virginia.

While they smoothed over their relationship as Cohn successfully worked to get tax reform -- the President's only major legislative accomplishment -- passed, a person close to the matter said it "was never the same."

As recently as last week, Cohn was still thinking he could hold on -- and wanted to, this person says -- but losing the tariff fight made clear that it was time to leave, the person said.

"Trade was the last straw," the same person said.

In the days since Trump's surprise announcement, Cohn worked quietly to soften Trump's decision and convince him to backtrack -- a campaign that was amplified by Republican leaders on Capitol Hill -- but Trump learned of the efforts, became angry at Cohn's attempts and made that clear in the last 24 to 48 hours.

Trump was surprised to learn that Cohn was working to arrange a meeting with representatives from the auto and bottling industries in an effort to demonstrate the effects the steel and aluminum tariffs would have, a person familiar with the situation said.

The President has said he's not interested in such a meeting, and has grown angry at what he sees as attempts to deter him from the plan, speaking disparagingly of "globalists" during internal conversations over the past week, the person said.

Cohn said in a statement it had been an "honor to serve my country and enact pro-growth economic policies" and thanked Trump for the opportunity.

White House chief of staff John Kelly said he would "miss having him as a partner in the White House."

Disputes over trade, Charlottesville

The move is likely to embolden the economic nationalist wing of the Trump administration, which has successfully moved Trump to take aggressive steps on trade in recent weeks.

For months, Cohn led the internal opposition to Trump's protectionist interests, working to rein in Trump's desire to slap steep tariffs on steel and aluminum imports. But his campaign fell apart last week when Trump sidestepped Cohn and announced his plans to impose the tariffs during a hastily arranged meeting with US steel and aluminum executives.

Just weeks earlier, Cohn was rumored as a potential successor to White House chief of staff John Kelly -- a remarkable turnaround in the Trump-Cohn relationship. it nearly fell apart last summer after Cohn offered a thinly veiled public rebuke of the President's response to the violence in Charlottesville, Virginia. Cohn said then that the administration "can and must do better in consistently and unequivocally condemning" hate groups after Trump blamed both white supremacists and counter-protesters for Charlottesville and said there were "some very fine people" among those protesting alongside white supremacists.

At the time, Cohn acknowledged in an interview with the Financial Times the pressure he faced to resign amid Trump's comments, but said he had decided to stay.

For weeks after that rebuke, Trump privately fumed about Cohn to advisers inside and outside the White House, with sources signaling that Cohn was only remaining on because of his critical role on tax reform.

But the passage of tax reform would not be Cohn's final act in the White House, remaining on board for more than two months, with his allies saying he hoped to continue to counteract Trump's protectionist trade instincts.

Cohn was once in consideration to be the next Federal Reserve chairman, but Trump's anger at Cohn over his rebuke last summer took him out of consideration, CNN reported then.

The questions about Cohn's status inside the West Wing returned in the last week after Trump announced his plans to slap tariffs on steel and aluminum imports. That suspicion was furthered on Tuesday -- hours before the White House announced his plans to resign -- when Cohn was absent from a joint news conference the President was holding at the White House.

Mississippi Coronavirus Cases

Data is updated nightly.

Cases: 314509

Reported Deaths: 7247
CountyCasesDeaths
DeSoto21626259
Hinds20359415
Harrison17934309
Rankin13634278
Jackson13447246
Madison10099217
Lee9980174
Jones8381163
Forrest7683152
Lauderdale7191241
Lowndes6401147
Lamar623086
Lafayette6200118
Washington5339134
Bolivar4802132
Oktibbeha462798
Panola4588107
Pearl River4512146
Marshall4443103
Warren4393121
Pontotoc420772
Monroe4113133
Union411076
Neshoba4031176
Lincoln3968110
Hancock379386
Leflore3497125
Sunflower336090
Tate334084
Pike3325105
Scott315973
Alcorn313368
Yazoo311669
Itawamba300477
Copiah297065
Coahoma295479
Simpson295288
Tippah288768
Adams286882
Prentiss279760
Marion269280
Leake268373
Wayne262641
Grenada261487
Covington259681
George248048
Newton246861
Winston227281
Tishomingo226967
Jasper221148
Attala214473
Chickasaw207857
Holmes189173
Clay185454
Stone182833
Tallahatchie178841
Clarke178080
Calhoun170832
Yalobusha164338
Smith162434
Walthall133945
Greene130633
Lawrence128624
Montgomery126942
Noxubee126734
Perry126338
Amite123142
Carroll121829
Webster114532
Jefferson Davis107133
Tunica105726
Claiborne102430
Benton99525
Humphreys96733
Kemper95828
Franklin83823
Quitman80916
Choctaw76418
Wilkinson67331
Jefferson65728
Sharkey50217
Issaquena1686
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Alabama Coronavirus Cases

Cases: 532895

Reported Deaths: 11001
CountyCasesDeaths
Jefferson771431528
Mobile41089808
Madison34837505
Tuscaloosa25810454
Montgomery24355588
Shelby23730249
Baldwin21191309
Lee15892171
Calhoun14522316
Morgan14324279
Etowah13861353
Marshall12250223
Houston10581281
Elmore10060205
Limestone9986151
Cullman9705194
St. Clair9702243
Lauderdale9441242
DeKalb8846187
Talladega8255176
Walker7246277
Autauga6938108
Jackson6815112
Blount6694137
Colbert6310134
Coffee5524119
Dale4850111
Russell443238
Chilton4308112
Franklin426282
Covington4136118
Tallapoosa4039152
Escambia393977
Chambers3578123
Dallas3557152
Clarke351161
Marion3130101
Pike311377
Lawrence300798
Winston275673
Bibb261564
Geneva251477
Marengo249664
Pickens234761
Barbour231756
Hale223277
Butler216469
Fayette212562
Henry189044
Cherokee184745
Randolph181742
Monroe178040
Washington167639
Macon159950
Clay156857
Crenshaw152757
Cleburne149141
Lamar142935
Lowndes139053
Wilcox127130
Bullock122841
Conecuh110629
Coosa107928
Perry107826
Sumter104832
Greene92534
Choctaw61124
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