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

A Commerce Ministry spokesperson additionally remarked that the nation could enact its own undisclosed “retaliatory steps” if the US President follows through on his pledge, noting that the country was “not afraid” of a potential trade conflict.

On Friday, Donald Trump retaliated at the Chinese government’s action to reinforce its regulations for overseas sales of rare earth minerals, charging the Chinese leadership of “becoming very hostile” and attempting to hold the global community “hostage”.

He also threatened to pull out of a planned meeting with Chinese leader Xi Jinping, which was arranged for a meeting in the Republic of Korea later this month.

The former president’s remarks on last Friday rattled financial markets, with the S&P 500 share index falling by nearly three percent, marking its biggest drop since last spring.

His comments reignited apprehensions of a trade war between the US and China.

Earlier this year, the both nations had reached an agreement to remove significant levies on each other’s imports, which had raised the prospect of bilateral trade stopping between the economic powers.

Consequently, United States levies on products from China subject to an extra thirty percent tariff compared with the year’s onset, while US goods entering China incur a import levy.

The most recent comments from China – published by the Commerce Ministry in the form of formal replies to media inquiries – echoed terminology from the peak of the recent trade conflict.

Officials denounced US export restrictions on electronic components while supporting China’s own export controls on rare earth minerals as “normal actions” to ensure domestic safety and that of every country.

Their representative remarked that for “an extended period”, the US had “expanded the interpretation” of national security, exploited foreign shipment regulations and “implemented” discriminatory practices against Beijing.

“Using” trade levy ultimatums is not the proper method to engage with Beijing,” their representative commented.

“The nation’s view” on a tariff war has remained steady: we are not seeking one, but we are not afraid of one.”

The previous week, Beijing revealed it was strengthening export controls on key elements and further resources essential to high-technology production.

The action was viewed as a key move, as the state processes about ninety percent of the planet’s critical minerals, which are used in items such as photovoltaic modules and smartphones.

The recent comments from Washington and Beijing are being seen by some as a strategy of enhancing bargaining power in preparation for future trade talks.

Is not yet known whether a summit between the former president and Xi Jinping, scheduled at a summit in Seoul before month’s end, will go ahead.