Gary Cohn, director of the National Economic Council, who nearly quit last summer after President Trump’s comments about the white supremacist march in Charlottesville, Virginia, might be pulling up drafts of resignation letters he previously wrote.
Cohn is mad that Trump went against his advice and decided to start a trade war by implementing a 25 percent tariff on steel, and 10 percent on aluminum. The news caused the DOW to plummet more than 500 points and Cohn is worried more repercussions could come soon once countries start retaliating.
While the announcement isn’t official yet, Cohn told White House Chief of Staff John Kelly that he would consider resigning if Trump made the tariff decision, and Trump did it anyway. Cohn considered that as a slap in the face, thereby making his job on the economy much more difficult.
Larry Kudlow, an outside Trump adviser, who has been mentioned as being a contender to take over Cohn’s role in the White House, also came out against the president’s decision on Thursday. Looks like he won’t be getting the job now after all. Not after this comment.
“All that will happen with steel tariffs is you will raise prices for all import users and that includes businesses and of course consumers,” Kudlow said. “You will wind up hurting millions of people to help 140,000 people in the steel industry. You will be hurting car buyers. Is that really what you want to do?”
Trump refers to anyone against the tariffs as “globalists.” He says US steel production is hurting and that it is a national security issue. That was the reasoning the US took in imposing the tariffs, so the WTO wouldn’t be able to say it was derelict. But, other countries could just do the same thing, and mention “national security” as the reason. Bottom line: There will be blowback and the full economic results aren’t completely understood yet.
Canada came out very harshly against the Trump administration after Trump announced the decision, and rightly so. Here is Canada Prime Minister Justin Trudeau: Tariffs are ‘absolutely unacceptable.’
Canada is the top supplier of U.S. steel and aluminum to the United States. Going back to the national security issue, in the event of a major war, Canada, our neighbor to the north, is going to be our ally, they always have been. There’s no reason to not exempt them (and other military allies) from this tariff. At the minimum, even if the tariff remains, we should. Cohn is said to be very upset by this decision, as well.