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Donald Trump’s newest ultimatum to introduce an extra complete levy on Chinese goods has been called a “prime illustration” of United States’ contradictory behavior, per the Beijing administration.

A official from China’s Commerce Ministry additionally remarked that China could introduce its own unrevealed “retaliatory steps” if the US President follows through on his threat, noting that the country was “not afraid” of a possible commercial battle.

On Friday, the former president hit back at China’s decision to strengthen its rules for exports of rare earths, accusing Beijing of “adopting a confrontational stance” and attempting to hold the global community “captive”.

Furthermore, he warned to withdraw from a arranged talks with Chinese leader President Xi, which was arranged for a meeting in South Korea in the coming weeks.

His statements on that day unsettled financial markets, with the S&P 500 falling by 2.7%, marking its steepest fall since last spring.

The president’s words reignited fears of a trade war between the US and China.

Earlier this year, the both nations had agreed to eliminate high import duties on each other’s goods, which had created the possibility of bilateral trade stopping between the two nations.

Consequently, American import duties on Chinese goods subject to an added 30% levy compared with the year’s onset, while American products entering the country are subject to a import levy.

China’s latest remarks – published by the relevant government department in the format of official answers to journalist’s questions – reflected rhetoric from the height of the latest commercial tensions.

They criticised US export restrictions on chips and semi-conductors while defending the country’s own overseas sale regulations on rare earths as “routine measures” to protect state interests and that of every country.

The spokesperson remarked that for “an extended period”, the United States had “overstretched the concept of national security, abused export control measures and “adopted discriminatory practices against Beijing.

“Using” tariff threats is not the right way to deal with Beijing,” their representative said.

“Beijing’s stance” on a tariff war has remained steady: we wish to avoid one, but we are unafraid of one.”

Recently, the Chinese government revealed it was reinforcing foreign shipment restrictions on rare earths and further resources vital for cutting-edge industry.

This move was regarded as a key move, as the nation processes about 90% of the global rare earth supply, which are employed in goods such as photovoltaic modules and mobile phones.

Latest statements from both governments are being viewed by some as a strategy of bolstering negotiating stances prior to future trade talks.

Is not yet known whether a meeting between Trump and President Xi, expected at a summit in South Korea later this month, will still proceed.