Trump has backed down in the face of pressure from both parties from his proposal to hold the global summit of the world's biggest economies at his Doral resort.
Van Susteren joined Fox News Channel following a contract-bidding war in 2002, where she hosted On the Record w/ Greta Van Susteren until 2016.
Mulvaney told reporters that the presidential retreat Camp David, frequently used for global summits, was insufficient, and claimed that Trump wouldn't profit from awarding the contract to one of his own properties."I think the president has pretty much made it very clear since he got here that he doesn't profit from being here".
"That's just absurd", Mulvaney shot back.
"The president is extraordinarily popular at home", the senior Trump official added.
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Beyond questions about the ethics of a president awarding a massive summit to himself, there were also security questions: How could anyone seal off a sprawling resort set among neighborhoods and office parks?
During that appearance, Mulvaney also told a reporter pointing out he had articulated a quid pro quo that "we do that all the time with foreign policy, " listing "three issues" that were involved in the Ukraine decision: corruption, the support other countries were offering, and an ongoing Justice Department investigation into the origins of the Russian Federation investigation.
"The look back to what happened in 2016 certainly was part of the thing he was anxious about in corruption with that nation, and that is absolutely appropriate", Mulvaney explained.
The White House had said that 11 other sites were examined as possible locations but never gave details about them.
In a series of late tweets, Mr Trump said he was reversing the idea because of "crazed and irrational hostility" by Democrats and the media. "I still think I'm doing a pretty good job as the chief of staff, and I think the president agrees". Mulvaney told "Fox News Sunday" it was "just absurd" to think that the episode, as well as Republican resistance to Trump's plan to pull U.S troops from Syria, made it more likely the Republican-led Senate would vote to convict Trump on impeachment charges if they are filed by the Democratic-led House.
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He has also clashed with White House counsel Pat Cipollone, sometimes mentioned as a potential Mulvaney successor, over strategy and tactics in response to impeachment.
Trump is facing multiple lawsuits accusing him of violating the Constitution by profiting from foreign and domestic officials who stay at Trump hotels.
"And it became apparent at the end of that process that Doral was, by far and away - far and away - the best physical facility for this meeting", he said.
But the holding up of aid for the lattermost reason was "news to" the Department of Justice and everyone else, and Mulvaney's other remarks regarding the quid pro quo - "We do that all the time with foreign policy" and "Get over it" - sent the news cycle into overdrive.
Doral was announced as the G7 venue by Mr Mulvaney on Thursday. "Absolutely", Mulvaney concluded on Fox.
Mulvaney's missteps draw scrutiny from Trump allies
Speaking on Fox News Sunday , Mulvaney said Trump "was honestly surprised at the level of pushback" against his selection of Doral.
He added that he will "find someplace else" to host the summit, which features representatives from the U.S., U.K., Canada, France, Germany, Italy and Japan.