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The former US president’s newest ultimatum to introduce an additional full import duty on items imported from China has been called a “classic case” of United States’ contradictory behavior, according to the Chinese government.

A official from China’s Commerce Ministry further commented that Beijing could implement its own unrevealed “retaliatory steps” if the American leader carries out his warning, emphasizing that the country was “unafraid” of a looming commercial battle.

On Friday, Donald Trump retaliated at China’s decision to strengthen its policies for overseas sales of rare earth minerals, alleging Beijing of “turning aggressive” and attempting to hold the global community “hostage”.

Furthermore, he vowed to withdraw from a planned summit with Chinese leader Xi Jinping, which was set for a meeting in Seoul in the coming weeks.

Trump’s comments on that day shook global markets, with the S&P 500 dropping 2.7%, marking its largest decline since earlier this year.

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

This past spring, the respective governments had agreed to drop triple-digit tariffs on each other’s products, which had raised the prospect of bilateral trade stopping between the two countries.

As a result, United States levies on Chinese goods facing an additional 30% levy compared with the beginning of 2025, while American products entering China are subject to a 10% tariff.

Beijing’s recent statements – published by the Ministry of Commerce in the manner of written responses to journalist’s questions – reflected rhetoric from the peak of the ongoing trade dispute.

They criticised United States controls on chips and semi-conductors while defending the country’s own restrictions on exports on rare earth minerals as “standard procedures” to ensure national security and that of all nations.

The spokesperson remarked that for “many years”, the America had “broadened the definition” of domestic safety, abused export control measures and “implemented” discriminatory practices against the Chinese nation.

“Using” import duty warnings is not the correct approach to deal with Beijing,” the spokesperson said.

“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, China revealed it was strengthening export controls on rare earths and other materials vital for cutting-edge industry.

The action was viewed as a important measure, as the country handles about the vast majority of the world’s rare earths, which are used in goods such as photovoltaic modules and mobile phones.

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

It is unclear whether a talks between Trump and China’s leader, planned at a summit in South Korea later this month, will go ahead.