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Donald Trump’s latest ultimatum to introduce an extra complete levy on Chinese goods has been described as a “prime illustration” of American hypocrisy, as stated by the Chinese government.

A representative of the ministry further commented that Beijing could implement its own undisclosed “retaliatory steps” if the White House occupant executes his threat, noting that the country was “not afraid” of a looming trade conflict.

This past Friday, Trump hit back at Beijing’s move to tighten its regulations for exports of rare earths, alleging the Chinese leadership of “adopting a confrontational stance” and attempting to hold the global community “under its control”.

Furthermore, he warned to withdraw from a planned summit with Chinese leader President Xi, which was arranged for a conference in Seoul later this month.

Trump’s comments on Friday unsettled global markets, with the S&P 500 share index dropping over two and a half percent, marking its steepest fall since last spring.

These statements reignited fears of a commercial dispute between the two economic giants.

In May, the respective governments had consented to drop triple-digit tariffs on each other’s imports, which had led to concerns of commerce ceasing between the economic powers.

Consequently, United States levies on Chinese imports facing an additional thirty percent tariff compared with the start of the year, while US goods entering China are subject to a 10% tariff.

Beijing’s recent statements – published by the Ministry of Commerce in the form of official answers to media inquiries – reflected language from the peak of the recent trade conflict.

They criticised American limits on exports on chips and semi-conductors while justifying China’s own export controls on rare earths as “normal actions” to protect national security and that of all nations.

Their representative stated that for “many years”, the United States had “broadened the definition” of domestic safety, misused foreign shipment regulations and “adopted discriminatory practices against Beijing.

“Resorting to import duty warnings is not the proper method to engage with China,” the official said.

“China’s position on a import duty dispute has remained unchanging: we wish to avoid one, but we are fearless of one.”

Last week, China revealed it was strengthening export controls on rare earth minerals and other materials vital for advanced tech manufacturing.

This move was regarded as a key move, as the state handles about 90% of the global rare earth supply, which are used in products such as renewable energy components and smartphones.

New remarks from the US and China are being interpreted by observers as a means of strengthening positions prior to future trade talks.

Is not yet known whether a talks between Trump and President Xi, scheduled at a summit in Seoul in the coming weeks, will take place as planned.