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Trump’s most recent threat to introduce an additional full import duty on items imported from China has been labeled a “prime illustration” of American hypocrisy, per the Beijing administration.

A official from China’s Commerce Ministry further commented that Beijing could enact its own unspecified “retaliatory steps” if the American leader executes his pledge, emphasizing that the country was “unafraid” of a possible trade conflict.

This past Friday, Trump retaliated at China’s decision to strengthen its rules for foreign shipments of rare earths, accusing China of “becoming very hostile” and attempting to hold the international market “hostage”.

He also threatened to pull out of a scheduled summit with Beijing’s head of state Xi, which was expected to take place during a conference in Seoul before the month ends.

Trump’s comments on Friday shook financial markets, with the benchmark US stock index dropping nearly three percent, marking its steepest fall since earlier this year.

The president’s words revived concerns of a trade war between the United States and China.

In May, the two sides had agreed to remove significant levies on each other’s imports, which had created the possibility of commerce ceasing between the two countries.

Consequently, American import duties on Chinese imports subject to an added thirty percent tariff compared with the beginning of 2025, while US goods entering the country incur a import levy.

China’s latest remarks – issued by the relevant government department in the form of formal replies to media inquiries – echoed rhetoric from the height of the ongoing trade dispute.

Officials denounced United States controls on electronic components while justifying the country’s own export controls on rare earths as “routine measures” to safeguard domestic safety and that of the global community.

The spokesperson stated that for “many years”, the America had “overstretched the concept of national security, exploited foreign shipment regulations and “implemented” discriminatory practices against the Chinese nation.

“Resorting to trade levy ultimatums is not the proper method to engage with China,” the spokesperson said.

“China’s position on a tariff war has always been consistent: we do not want one, but we are unafraid of one.”

Recently, Beijing declared it was strengthening overseas sale regulations on rare earths and other materials essential to cutting-edge industry.

This was seen as a significant step, as the state handles about 90% of the global rare earth supply, which are used in items such as solar panels and smartphones.

New remarks from the US and China are being seen by some as a means of enhancing bargaining power ahead of future trade talks.

It is unclear whether a meeting between Donald Trump and President Xi, scheduled at a summit in the Republic of Korea before month’s end, will go ahead.