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