"His resignation leaves the president with a set of economic advisers largely seen as outside of the mainstream, or at least perceived as less aligned with Wall Street interests", he said.
Mr Cohn is the latest in a series of high-profile departures from the White House, including communications director Hope Hicks. Everett Eissenstat, the council's deputy director, who assisted on energy and environment discussions at the Group of 20 summit in Germany, is Cohn's lieutenant on trade.
Trump says the $1.5 trillion package of tax cuts he signed late past year have finally given American business a "level playing field".
On the US economic front, the Commerce Department released a report showing a slightly bigger than expected decrease in factory orders in the month of January.
Cohn argued that increased protectionism would damage the United States economy and lead to job losses, a theory held by many economists. But Cohn's resignation Tuesday dealt a blow to that expectation.
There could be more turnover on the NEC staff following Cohn's departure, depending on who ascends to the top job.
The White House announced after the markets closed Tuesday that Cohn, President Trump's top economic adviser, was resigning. Trade Commissioner Malmstroem countered that argument by warning that such a move could lead to thousands of job losses at European automobile manufacturers, many of whom have major production facilities in the USA.
The markets recovered on Monday and Tuesday, as investors gained confidence that House Speaker Paul Ryan and other top Republicans would soften Trump's position on tariffs.
President Trump has denied that his White House is chaotic but says more staff will leave as he seeks "perfection". You could make the argument, of course, that Trump's white-supremacist talk didn't directly conflict with Cohn's gig; you could also argue, however, that this shows where the former Goldman Sachs executive's priorities lie. Although Cohn was a registered Democrat - a fact his detractors who opposed climate action often raised - Beachy noted that he was also influenced by his roots in investment banking. Allies of Stephen Bannon - another departed adviser - reportedly gave Mr. Cohn the epithet "Globalist Gary". But Cohn and the president had an on-again, off-again relationship, with relations becoming chilly after Cohn criticized Trump's response to a white supremacist rally in Charlottesville, Va.
George David Banks left last month after failing to get a permanent security clearance.
U.S. stocks opened sharply lower on news that White House economic advisor Gary Cohn would depart the White House in the coming weeks after failing to persuade Trump on free trade issues. But why anyone should be surprised at Trump's announcement is a mystery: the one issue where the protean Trump has been consistent for 30 years is trade.
Without Cohn in the picture, Navarro, an economist, will likely have a clearer field to pursue a protectionist agenda, which squares with Trump's long-held concerns about trade. After privately seething over Trump's claim that "both sides" were responsible for the violence, Cohn voiced his criticism publicly in an interview with the Financial Times that was interpreted as a rebuke of his boss.
At various points, Mr. Cohn appeared to be in the running for other government jobs. For years, USA businesses have complained about Chinese misappropriation of trade secrets and copyrighted works, as well as flagrant violations of patent and trademark rights.
The White House stated Cohn was not specifically leaving over one issue, according to The New York Times, and Trump himself praised Cohn's work in a statement.
But those views sounded more like wishful thinking after Trump's news conference with Sweden's prime minister, when Trump reiterated his intentions. But "so many people want to come in".