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Trump’s most recent ultimatum to enforce an extra 100% tariff on items imported from China has been called a “classic case” of American hypocrisy, per the Chinese government.

A representative of the ministry additionally remarked that Beijing could enact its own unspecified “retaliatory steps” if the American leader executes his pledge, adding that the country was “fearless” of a looming trade war.

On Friday, the former president hit back at the Chinese government’s action to reinforce its regulations for overseas sales of rare earth minerals, charging the Chinese leadership of “becoming very hostile” and attempting to hold the international market “hostage”.

He also warned to withdraw from a planned summit with Chinese leader Xi Jinping, which was expected to take place during a conference in the Republic of Korea later this month.

Trump’s comments on Friday rattled financial markets, with the S&P 500 dropping 2.7%, marking its biggest drop since April.

These statements revived fears of a commercial dispute between the United States and China.

This past spring, the both nations had consented to eliminate triple-digit tariffs on each other’s goods, which had led to concerns of trade halting between the economic powers.

This left, American import duties on products from China facing an added import tax compared with the start of the year, while items from the United States entering the Chinese market are subject to a ten percent duty.

China’s latest remarks – released by the Commerce Ministry in the manner of written responses to journalist’s questions – mirrored rhetoric from the peak of the recent trade conflict.

They criticised American limits on exports on chips and semi-conductors while defending China’s own overseas sale regulations on rare earth minerals as “routine measures” to safeguard domestic safety and that of the global community.

The official said that for “a long time”, the US had “expanded the interpretation” of domestic safety, abused foreign shipment regulations and “enforced” biased policies against China.

“Using” tariff threats is not the right way to engage with the Chinese government,” the spokesperson stated.

“The nation’s view” on a tariff war has remained unchanging: we are not seeking one, but we are fearless of one.”

The previous week, Beijing revealed it was tightening foreign shipment restrictions on rare earths and further resources critical for cutting-edge industry.

This move was regarded as a important measure, as the nation refines about 90% of the global rare earth supply, which are employed in products such as renewable energy components and mobile phones.

New remarks from the US and China are being seen by analysts as a means of enhancing bargaining power prior to future trade talks.

Is not yet known whether a meeting between Donald Trump and Xi Jinping, expected at a summit in the Republic of Korea later this month, will take place as planned.