US shares fall after Trump adviser quits
The resignation of Gary Cohn, Donald Trump’s top economic adviser, led to stock market falls. The Dow Jones fell more than 300 points, around 1 per cent, after Mr Cohn announced he was leaving as the head of the National Economic Council after losing a battle with the president over steel tariffs. Meanwhile, a new study shows that 43 per cent of White House senior staff have either resigned, been sacked or moved post since Mr Trump’s inauguration day.
THE resignation of Gary Cohn, Donald Trump’s top economic adviser, led to stock market falls yesterday and fears that the president is increasingly reliant on protectionist advisers.
The Dow Jones fell more than 300 points, around 1 per cent, after Mr Cohn announced he was leaving as the head of the National Economic Council after losing a battle over steel tariffs.
Mr Cohn, a former Goldman Sachs president, was one of the biggest advocates of free trade in the White House and seen as a curb on Mr Trump’s nationalistic economic instincts. His resignation means close to half of White House senior staff in place on inauguration day have left their roles – a much higher proportion than other recent presidents.
The White House yesterday said that Mr Trump would announce details of his 25 per cent steel tariff and 10 per cent aluminium tariff proposal “at the end of the week”. The plan has triggered a fierce backlash from allies such as Britain, Canada and the European Union and leading Republicans like Paul Ryan, the party’s most senior figure in House of Representatives.
Mr Cohn’s departure marks the end of a topsy-turvy relationship with Mr Trump after the Democrat and Wall Street titan entered the White House to advise on economics.
He came close to quitting over violent white supremacist protests in Charlottesville last year, publicly criticising Mr Trump’s response in an interview with the Financial Times.
The pair worked closely on the president’s $1.5 trillion tax cut and Mr Trump even reportedly sounded out Mr Cohn recently to be his future chief of staff. However, Mr Cohn’s opposition to tariffs pitted him against Peter Navarro, another White House economic adviser, and Wilbur Ross, the US commerce secretary.
Mr Cohn’s exit follows recent departures from Hope Hicks, the director of communications, said to be one of Mr Trump’s closet aides, and Rob Porter, the White House staff secretary.
The upheaval has led to claims that the “nationalist” wing of the White House, which favours trade protection, is gaining influence over the “globalists”, who believe in free trade.
The Trump administration is understood to be preparing action to punish China for stealing intellectual US property in the coming months, which could trigger another trade row.
Figures compiled by Kathryn Dunn Tenpas of the Brookings Institution show that 43 per cent of White House senior staff have either resigned, been sacked or moved post since Mr Trump became president. Speaking on Tuesday, he rejected claims that people did not want to work under him.
“Believe me, everybody wants to work in the White House,” the president said. “They all want a piece of that Oval Office; they want a piece of the West Wing.”