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Trump’s latest ultimatum to introduce an additional full import duty on Chinese goods has been labeled a “typical example” of American hypocrisy, according to the China’s leadership.

A official from China’s Commerce Ministry further commented that the nation could implement its own unrevealed “responsive actions” if the American leader carries out his warning, adding that the country was “not afraid” of a potential trade war.

This past Friday, Donald Trump responded at the Chinese government’s action to strengthen its regulations for overseas sales of rare earth minerals, alleging the Chinese leadership of “becoming very hostile” and attempting to hold the international market “captive”.

Additionally, he warned to withdraw from a scheduled meeting with Beijing’s head of state President Xi, which was arranged for a meeting in South Korea before the month ends.

Trump’s comments on last Friday unsettled financial markets, with the S&P 500 closing down nearly three percent, marking its biggest drop since April.

The president’s words revived concerns of a commercial dispute between the two economic giants.

In May, the respective governments had agreed to eliminate significant levies on each other’s imports, which had raised the prospect of trade halting between the two countries.

This left, American import duties on Chinese imports facing an added thirty percent tariff 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 official answers to journalist’s questions – mirrored language from the zenith of the ongoing trade dispute.

They criticised United States controls on semiconductors and chips while supporting Beijing’s overseas sale regulations on rare earths as “normal actions” to ensure domestic safety and that of every country.

The official remarked that for “an extended period”, the United States had “overstretched the concept of state security, misused foreign shipment regulations and “implemented” unfair treatments against the Chinese nation.

“Turning to” trade levy ultimatums is not the correct approach to interact with the Chinese government,” the official stated.

“Beijing’s stance” on a trade conflict has consistently been unchanging: we wish to avoid one, but we are not afraid of one.”

The previous week, the Chinese government announced it was strengthening overseas sale regulations on rare earth minerals and other materials critical for cutting-edge industry.

This was seen as a significant step, as the state handles about 90% of the global rare earth supply, which are utilized in items such as photovoltaic modules and mobile phones.

The recent comments from the US and China are being viewed by some as a means of bolstering negotiating stances in preparation for future trade talks.

Is not yet known whether a talks between Trump and President Xi, expected at a summit in the Republic of Korea before month’s end, will take place as planned.