President Donald Trump’s top economic advisor Gary Cohn resigns after tariff dispute

While global equities recovered from a trade-induced blow last week, graver concerns are emerging.

White House national economic council director Gary Cohn will resign from his post, the White House confirmed Tuesday, in yet another high-profile departure from the Trump administration in recent weeks.

The European Union has promised to put tariffs on exports to the USA including peanut butter, orange juice and bourbon if President Trump goes ahead with plans to put charges on steel imports.

As well as changing the narrative around the CPTPP, Trump may end up boosting the case of those arguing for deeper trade ties, only without the U.S. in the room.

“Of all the Trump administration resignations, this will be the one most meaningful for markets”.

Internally, White House officials who oppose the blanket tariffs have urged the administration to limit the countries that would be affected and to impose time limits. This opens the environment up to whole new wave of uncertainty.

While the Dollar is the obvious subject of a global trade war sparked by the U.S., it would be unwise to lose site of that word “global” as there will be other winners and losers when it comes to currencies.

Trump has said the tariffs are needed to preserve the American industries and protect national security.

Mr Tusk added that such measures include proportionate responses in line with World Trade Organisation rules.

Warning of economic fallout, congressional Republicans and industry groups pressed Trump on Tuesday to narrow his plan for across-the-board tariffs on imports of steel and aluminum.

Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. “The market doesn’t like uncertainty, the market doesn’t like surprises”. “We are definitely going to end up with these tariffs and we are going to roll these out quickly”. “I was just amazed that Trump is letting this happen”. I like different points of view. “Even still, though I might admire his negotiating tactics, and it actually might get us a better agreement, I still hate to see a core principle seemingly abandoned to further negotiations”.

“We are extremely anxious about the consequences of a trade war and are urging the White House to not advance with this plan”, said Ryan’s press secretary, AshLee Strong. A day after Cohn’s exit, those fears kicked into overdrive as stocks around the world tumbled. “His departure gives conservatives and protectionists much more influence over White House policy”.

“It’s clear at the moment the markets are likely to price the worst-case scenario on tariffs”.

Chinese officials, who have been studying curbs on USA products such as soybeans according to past reports, were otherwise largely quiet on the tariff question Wednesday.

“The really important next thing is how do other countries react to this”.

Commerce Secretary Wilbur Ross says the White House is seeking to take a “surgical approach” to new tariffs, saying it is possible Canada and Mexico could be exempted.

“I think it’s a turn for the worse”, Kudlow said on CNBC, where he is a commentator.

By restricting the amount of cheap materials entering the country, Trump is essentially handing more business to local manufacturing – but that could increase the price of American-made products and lead to less competition in the sector.