Speaking on Bloomberg TV, Peter Navarro - the man who, following his promotion 2 weeks ago, many believe was responsible for not only Trump's decision to launch trade wars, but led to the resignation of Gary Cohn - discussed the current White House expertise on economic matters, saying "we have a deep economic bench with lots of points of view", but more importantly, said that "I'm not on the list to replace Gary Cohn."
Reportedly, that makes Larry Kudlow, long reported by Politico as a potential Cohn replacement, favorite to become Trump's top economic advisor. What is notable is that Kudlow made several TV appearances yesterday, and told CNBC that he was firmly against trade tariffs.
In response to Navarro's statement, stocks spiked to session highs, and while the S&P is still down on the day, it has wiped out almost all losses. As some have noted, the market appears to be "hugely relieved" that the biggest trade hardliner has distanced himself from taking the top economic job.
Separately, Navarro also played down the steel and aluminium tariffs as “modest”, reflecting potentially a certain softening of rhetoric from within the White House today. He also pointed out that "everything about the US economy is bullish" and added that the steel and aluminum tariffs are "good for the economy."
- *NAVARRO SAYS EVERYTHING ABOUT U.S. ECONOMY IS BULLISH
- *NAVARRO: METAL TARIFFS ARE GOOD FOR THE ECONOMY
- *NAVARRO: STEEL, ALUMINUM TARIFFS ARE MODEST
He concluded that it is yet to be determined when Trump signs the tariff orders, although according to the previous report from Axios, that day could come as soon as tomorrow.