Economic nationalists appeared to gain the upper hand in a White House battle over trade with the resignation of Donald Trump's top economic adviser, Gary Cohn, on Tuesday, a development that could tip the balance of views in Washington toward ramping up protectionist measures that risk igniting a global trade war.
Cohn did not spell out the reasons for his resignation. He had told Trump that markets would slump on a threat of tariffs and was regarded as a bulwark of economic orthodoxy in an administration whose protectionist policies have sparked alarm among U.S. legislators and in governments around the world.
Cohn's resignation came after Trump said he was sticking with plans to impose hefty tariffs on steel and aluminum imports. While the measures on their own are relatively small, the risk is that an emboldened Trump administration will push ahead with a full-scale economic confrontation with China.