Trump Taps Kudlow To Replace Cohn

Trump offered Kudlow the job Tuesday night over the phone and he accepted, the source said.

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Kudlow's ascension, however, does not solve the disagreement inside the administration over Trump's tariff decision. The cable news personality has been outspoken in opposition to the tariff plan and wrote an op-ed for CNBC earlier this month that detailed his disagreements.

"In other words, steel and aluminum may win in the short term, but steel and aluminum users and consumers will lose," Kudlow wrote. "In fact, tariff hikes are really tax hikes."

Trump acknowledged his disagreement on tariffs with Kudlow in a conversation with reporters on Tuesday, but said he welcomed the difference of opinion.

"I'm looking at Larry Kudlow very strongly. I've known him a long time. We don't agree on everything but in this case I think that's good. I want to have a divergent opinion -- we agree on most," Trump said.

He added that Kudlow has "come around to believing in tariffs as a negotiating point."

Peter Navarro, Trump's top trade adviser and a fervent proponent of the President's tariffs, was seen as the force behind Cohn's eventual departure. The two butted heads over the decision and internally Trump's decision was seen as a win for Navarro and a damaging loss for Cohn.

Wary of the narrative that Navarro and Kudlow will clash in the same way that Navarro and Cohn did, a source close to Navarro said the President's trade adviser is "very happy" with Kudlow's selection.