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Donald Trump’s newest ultimatum to introduce an extra 100% tariff on Chinese goods has been labeled a “prime illustration” of American hypocrisy, per the Chinese government.

A official from China’s Commerce Ministry further commented that Beijing could implement its own unspecified “retaliatory steps” if the American leader follows through on his threat, noting that the country was “not afraid” of a looming commercial battle.

On Friday, Donald Trump hit back at Beijing’s move to tighten its policies for overseas sales of rare earths, accusing the Chinese leadership of “turning aggressive” and attempting to hold the global community “hostage”.

He also warned to cancel a scheduled meeting with Beijing’s head of state Xi Jinping, which was expected to take place during a meeting in Seoul later this month.

Trump’s comments on that day rattled stock exchanges, with the S&P 500 closing down over two and a half percent, marking its biggest drop since last spring.

His comments revived concerns of a trade conflict between the two economic giants.

Earlier this year, the two sides had reached an agreement to drop triple-digit tariffs on each other’s goods, which had created the possibility of commerce ceasing between the economic powers.

As a result, United States levies on Chinese goods incurring an extra 30% levy compared with the start of the year, while items from the United States entering the Chinese market are subject to a ten percent duty.

China’s latest remarks – issued by the Commerce Ministry in the form of written responses to media inquiries – echoed terminology from the zenith of the recent trade conflict.

They criticised American limits on exports on chips and semi-conductors while supporting the country’s own export controls on key elements as “routine measures” to protect national security and that of the global community.

Their representative stated that for “many years”, the US had “expanded the interpretation” of domestic safety, exploited overseas sale restrictions and “adopted unfair treatments against Beijing.

“Turning to” import duty warnings is not the correct approach to interact with Beijing,” their representative stated.

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

Last week, Beijing revealed it was reinforcing overseas sale regulations on rare earths and further resources critical for advanced tech manufacturing.

The action was viewed as a key move, as the nation refines about 90% of the planet’s critical minerals, which are employed in goods such as photovoltaic modules and handheld devices.

Latest statements from both governments are being viewed by observers as a strategy of enhancing bargaining power prior to future trade talks.

Remains uncertain whether a summit between the former president and China’s leader, expected at a summit in South Korea before month’s end, will take place as planned.