As I write this stocks are in free fall after President Trump announced that he will impose a 25% tariff on steel and a 10% tariff on aluminum. It signals the opening salvo in a trade war that will raise prices domestically, harm export industries and weaken alliances abroad.
However the knock-on effect could trigger the resignation of National Economic Council Director, Gary Cohn. Cohn clearly lost a very public internal fight against the protectionist wing in the White House, namely Peter Navarro, Wilbur Ross and Robert Lighthizer. Because the financial markets have been reassured by the presence of Cohn, a former Goldman Sachs executive, his leaving of the White House would trigger further selling. Given the wholesale resignations from the Trump White House, why should Cohn's leaving be any different.
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