U.S. Sparks Fears of Trade War as Trump Arrives in Davos

(From Reuters)

A day after sending the dollar reeling with comments supportive of a weak U.S. currency, U.S Treasury Secretary Steven Mnuchin said the Trump administration was not seeking a trade war but would defend its economic interests.

At a news conference at the World Economic Forum in Davos, Mnuchin played down his comments on Wednesday that a weaker dollar was “good for us as it relates to trade and opportunities”, saying they had been “balanced and consistent”.

The remarks were seen by markets as departing from traditional U.S. currency policy and elicited thinly veiled warnings from European finance ministers, as U.S. President Donald Trump arrived in Davos to promote his “America First” agenda.

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