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Trump’s Economic Adviser Resigns – Stocks Drop on the News

<p>Top Economic Adviser Gary Cohn has decided to resign after failing to convince Trump not to implement high tariffs on steel and aluminum&period;&nbsp&semi;<&sol;p>&NewLine;<p>&ldquo&semi;It has been an honor to serve my country and enact pro-growth economic policies to benefit the American people&comma; in particular the passage of historic tax reform&comma;&rdquo&semi; said Cohn&period; &ldquo&semi;I am grateful to the president for giving me this opportunity and wish him and the administration great success in the future&period;&rdquo&semi;&nbsp&semi;<&sol;p>&NewLine;<p>Cohn&comma; a former Goldman Sachs executive&comma; has a reputation as a shrewd businessman with a pro-trade worldview&period; During his 14 months at the White House&comma; Cohn oversaw a major overhaul of the tax code and pushed for a substantial rewrite of financial rules&period;&nbsp&semi;<&sol;p>&NewLine;<p>Last week&comma; Cohn told aides he might resign if Trump followed through with the tariffs&period;&nbsp&semi;<&sol;p>&NewLine;<p>&ldquo&semi;I don&&num;8217&semi;t think he suddenly lost an argument&period; He just never won it&comma;&rdquo&semi; said Joshua Bolten&comma; who served as George W&period; Bush&rsquo&semi;s chief of staff from 2006 to 2009&period; &ldquo&semi;He&rsquo&semi;s done a very effective job through rational argumentation and maybe through bureaucratic maneuvering in staving off the day of reckoning&period;&rdquo&semi;<&sol;p>&NewLine;<p>â€&DoubleDot;That day of reckoning occurred last week when President Trump announced new tariffs on steel and aluminum &lpar;25&percnt; and 10&percnt; respectively&rpar; that will affect all trading partners&period;&nbsp&semi;<&sol;p>&NewLine;<p>The announcement&comma; which followed a clandestine meeting between Trump and a handful of tariff supporters&comma; came as a complete surprise to most Administration officials&period;&nbsp&semi;<&sol;p>&NewLine;<p>&ldquo&semi;There is extreme frustration when the process breaks down&comma;&rdquo&semi; said one official&comma; adding that the process was &ldquo&semi;hijacked&rdquo&semi; by White House &ldquo&semi;nationals&period;&rdquo&semi;&nbsp&semi;<&sol;p>&NewLine;<p><strong>Anxiety on Wall Street<&sol;strong><&sol;p>&NewLine;<p>Cohn&rsquo&semi;s decision to resign could cause further anxiety for investors &ldquo&semi;who saw him as a steady hand in an otherwise unpredictable administration&comma;&rdquo&semi; reports <em>Newsmax&period;&nbsp&semi;<&sol;em>With both Cohn and former Chief Strategist Steven Bannon gone&comma; the future of Trump&rsquo&semi;s economic policy could be steered by Commerce Sec&period; Wilbur Ross and Treasury Sec&period; Steven Mnuchin&period;<&sol;p>&NewLine;<p>&ldquo&semi;More than anyone else in the White House&comma; Cohn had credibility with the markets&comma;&rdquo&semi; said financial policy analyst Ian Katz&period; &ldquo&semi;If we go several days without news of a replacement&comma; investors could get edgy&period;&rdquo&semi;&nbsp&semi;<&sol;p>&NewLine;<p>Wall Street fears the steel and aluminum tariffs will ignite a trade war that could damage the US economy&period; Key trade partners&comma; including Canada and the EU&comma; have already criticized the new tariffs as unacceptable&period;&nbsp&semi;<&sol;p>&NewLine;<p>&mdash&semi;<&sol;p>&NewLine;<p>&&num;8220&semi;Gary has been my chief economic adviser and did a superb job in driving our agenda&comma;&&num;8221&semi; said Trump&period; &&num;8220&semi;He is a rare talent&comma; and I thank him for his dedicated service to the American people&period;&&num;8221&semi;&nbsp&semi;<&sol;p>&NewLine;<p>Possible successors include WH economic adviser Peter Navarro&comma; CNBC commentator Lawrence Kudlow&comma; and Council of Economy Advisers Chairman Kevin Hassett&period;<&sol;p>&NewLine;

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