President Trump's chief economic advisor Gary Cohn is departing the administration after losing an internal clash over looming steel tariffs.

Word of his departure came just hours after Trump said he would impose 'loving, loving' tariffs to protect U.S. industry, and issued a new threat against European cars.

'Gary has been my chief economic adviser and did a superb job in driving our agenda, helping to deliver historic tax cuts and reforms and unleashing the American economy once again,' Trump told the New York Times in a statement.

'He is a rare talent, and I thank him for his dedicated service to the American people.'

Cohn, 57, is expected to leave within weeks. He becomes just the latest Trump adviser to abandon ship, just days after communications director Hope Hicks decided to go.

WOE IS ME: Chief of Staff to Vice President Pence Nick Ayers, left, and White House chief economic adviser Gary Cohn, listen as President Donald Trump speaks at a meeting with the members of the National Governors Association in the State Dining Room of the White House in Washington, DC on Monday, Feb. 26, 2018. He is expected to leave within weeks

President Trump tweeted his optimistic reassurance on Tuesday that 'many people want the job' and he'll carefully choose Cohn's successor soon

The news comes on a day when Trump tweeted about 'chaos' and churn on the staff, and defended the White House as a place where everyone wants to work.

'Everyone wants to work in the White House,' Trump said. 'They all want a piece of the Oval Office.'

'The new Fake News narrative is that there is CHAOS in the White House. Wrong!' Trump tweeted Tuesday morning. 'People will always come & go, and I want strong dialogue before making a final decision.'

He added, 'I still have some people that I want to change (always seeking perfection). There is no Chaos, only great Energy!'

On Tuesday he added in an optimistic tweet that he would be 'making a decision soon on the appointment of new Chief Economic Advisor. Many people wanting the job – will choose wisely!'

The groundwork for Cohn's departure came last week when Trump surprised his own aides by announcing his proposed 25 per cent steel tariff on live television during a meeting.

Cohn clashed with Commerce Secretary Wilbur Ross over the tariffs, and did not prevail.

The topic had been the subject of a fierce internal battle that had not been finalized.

'The European Union has been particularly tough on the United States,' Trump complained at a White House press conference with Swedish Prime Minister Stefan Lofven

The administration is also considering tariffs to punish China for intellectual property abuses, Bloomberg reported. The move could provoke retaliation from China. The tariffs would hit various products as well as Chinese investment in the U.S., according to the report.

Trump defended the churn of his staff as beneficial in a press availability with the Swedish prime minister, where he also pounded the EU for its trade policies, amid fears a trade war could break out.

Cohn did not attend the news conference.

'The European Union has been particularly tough on the United States,' Trump complained.

Then he went after European cars – amid concerns that U.S. car manufacturers could suffer if the price of imported steel jumps under a Trump tariff.

'They make it almost impossible for us to do business with them, and yet they send their cars and everything else back into the United States,' Trump said.

National Security Advisor H.R. McMaster (R) ans Gary Cohn, White House Economic Advisor brief reporters on President Donald Trump's upcoming trip to the World Economic Forum later this week in Davos Switzerland, at the White House on January 23, 2018 in Washington, DC

'And they can do whatever they'd like, but if they do that, then we put a big tax of 25 per cent on their cars – and believe me, they won't be doing it very long.'

Trump also defended his White House as a great place to work – and even said it was a resume-builder.

'I don't really want to talk about that. I just said that the White House has tremendous energy. It has tremendous spirit. It is a great place to be working. Many, many people want every single job,' he replied.

Expanding on the tweet, Trump said, 'You know, I read where, 'Oh, gee, maybe people don't want to work for Trump.' And believe me, everybody wants to work in the White House.

Gary Cohn, White House Economic Advisor, briefs reporters on President Donald Trump's upcoming trip to the World Economic Forum in Davos Switzerland, at the White House on January 23, 2018

National Security Advisor H.R. McMaster (R) and Gary Cohn, White House Economic Advisor brief reporters on President Donald Trump's trip to the World Economic Forum later this week in Davos Switzerland, at the White House on January 23, 2018 in Washington, DC

'And not only in terms of, it looks great on their resume, it's just a great place to work. It's got tremendous energy. It's tough,' he added. 'The White House has a tremendous energy and we have tremendous talent. Yeah, there'll be people, I'm not going to be specific, but there'll be people that change. They always change. Sometimes they want to go out and do something else.'

The news follows reports that Cohn had organized a Thursday meeting with representatives of industries affected by the proposed steel tariffs. It would have been an opportunity for them to try to push back at the idea.

An auto industry source told DailyMail.com Tuesday before word of Cohn broke that the meeting was apparently off for now.

Cohn, who is Jewish, nearly quit after Trump's equivocating remarks on Charlottesville. He drafted a resignation letter that he did not submit.

Cohn's departure follows that of Communications Director Hope Hicks, who announced she was leaving days after appearing before congressional investigators

CHURN: White House Communications Director Hope Hicks announced that she will be leaving soon

The White House issued glowing statements about Cohn Tuesday evening.

'Gary has served his country with great distinction, dedicating his skill and leadership to grow the U.S. economy and pass historic tax reform. I will miss having him as a partner in the White House, but he departs having made a real impact in the lives of the American people,' said chief of staff John Kelly.

Cohn said in the statement: 'It has been an honor to serve my country and enact pro-growth economic policies to benefit the American people, in particular the passage of historic tax reform. I am grateful to the President for giving me this opportunity and wish him and the Administration great success in the future.'

The Times reported Cohn's departure followed conversations Trump had with him about potentially replacing Kelly as White House chief of staff. Trump never made a formal job offer but did discuss whether Cohn was interested, according to the report.