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Donald Trump’s latest ultimatum to enforce an additional full import duty on Chinese goods has been described as a “prime illustration” of American hypocrisy, as stated by the China’s leadership.

A Commerce Ministry spokesperson additionally remarked that the nation could implement its own unspecified “retaliatory steps” if the US President executes his threat, emphasizing that the country was “fearless” of a potential trade conflict.

On Friday, the former president hit back at China’s decision to reinforce its rules for overseas sales of rare earths, charging Beijing of “becoming very hostile” and attempting to hold the world “under its control”.

Furthermore, he vowed to pull out of a arranged summit with China’s President President Xi, which was expected to take place during a meeting in Seoul later this month.

The former president’s remarks on Friday shook stock exchanges, with the benchmark US stock index falling by over two and a half percent, marking its steepest fall since April.

The president’s words revived fears of a trade conflict between the two economic giants.

In May, the respective governments had reached an agreement to drop significant levies on each other’s goods, which had created the possibility of trade halting between the two nations.

As a result, United States levies on Chinese goods facing an additional 30% levy compared with the year’s onset, while US goods entering the Chinese market are subject to a ten percent duty.

The most recent comments from China – published by the Commerce Ministry in the format of formal replies to press queries – reflected terminology from the height of the ongoing trade dispute.

They criticised US export restrictions on semiconductors and chips while justifying Beijing’s overseas sale regulations on key elements as “routine measures” to safeguard state interests and that of all nations.

Their representative said that for “many years”, the United States had “expanded the interpretation” of domestic safety, abused export control measures and “implemented” discriminatory practices against Beijing.

“Using” tariff threats is not the correct approach to interact with Beijing,” the official commented.

“The nation’s view” on a trade conflict has always been unchanging: we wish to avoid one, but we are fearless of one.”

The previous week, Beijing declared it was reinforcing export controls on rare earth minerals and other materials essential to high-technology production.

The action was viewed as a important measure, as the nation handles about 90% of the world’s rare earths, which are used in goods such as photovoltaic modules and mobile phones.

The recent comments from both governments are being interpreted by analysts as a means of bolstering negotiating stances ahead of upcoming negotiations.

It is unclear whether a summit between Donald Trump and Xi Jinping, planned at a summit in South Korea before month’s end, will still proceed.