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The former US president’s latest warning to enforce an additional 100% tariff on products from China has been labeled a “classic case” of American hypocrisy, as stated by the China’s leadership.

A Commerce Ministry spokesperson additionally remarked that China could implement its own unspecified “retaliatory steps” if the US President executes his warning, adding that the country was “not afraid” of a potential commercial battle.

This past Friday, Donald Trump responded at China’s decision to tighten its policies for overseas sales of rare earths, alleging China of “becoming very hostile” and attempting to hold the international market “hostage”.

He also vowed to withdraw from a scheduled summit with China’s President Xi, which was set for a conference in the Republic of Korea in the coming weeks.

The former president’s remarks on last Friday unsettled global markets, with the S&P 500 dropping nearly three percent, marking its biggest drop since last spring.

The president’s words reignited fears of a commercial dispute between the United States and China.

This past spring, the respective governments had agreed to eliminate high import duties on each other’s imports, which had raised the prospect of trade halting between the economic powers.

As a result, United States levies on Chinese imports incurring an additional thirty percent tariff compared with the start of the year, while American products entering China are subject to a ten percent duty.

Beijing’s recent statements – released by the Ministry of Commerce in the form of formal replies to journalist’s questions – mirrored language from the peak of the ongoing trade dispute.

The remarks condemned US export restrictions on semiconductors and chips while justifying China’s own restrictions on exports on rare earths as “standard procedures” to safeguard state interests and that of all nations.

Their representative stated that for “many years”, the United States had “overstretched the concept of state security, misused foreign shipment regulations and “implemented” discriminatory practices against the Chinese nation.

“Turning to” tariff threats is not the correct approach to engage with China,” the spokesperson said.

“The nation’s view” on a trade conflict has consistently been consistent: we wish to avoid one, but we are not afraid of one.”

Last week, the Chinese government declared it was strengthening foreign shipment restrictions on rare earths and other materials critical for cutting-edge industry.

This was seen as a important measure, as the state refines about the vast majority of the global rare earth supply, which are employed in items such as renewable energy components and handheld devices.

New remarks from the US and China are being interpreted by analysts as a method of bolstering negotiating stances prior to future trade talks.

Is not yet known whether a talks between Trump and Xi Jinping, expected at a high-level meeting in South Korea before month’s end, will go ahead.