Mnuchin says trade war with China likely won't 'have a meaningful impact on our economy'

Treasury Secretary Steven Mnuchin conceded a trade war with China is possible in an appearance on CBS Sunday, but he downplayed its probable effects for the American economy.

"Our expectation is that we don't think there will be a trade war," Mnuchin said. "Our objective is to continue to have discussions with China. We want to have free and fair reciprocal trade." But "whatever happens in trade," he continued, "I don't expect it to have a meaningful impact on our economy."

Saturday afternoon, President Trump had struck a combative tone about China and trade on Twitter:

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Sunday morning, however, he was more optimistic:

Read Mnuchin's full comments on the Trump administration's trade agenda here.