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Trump’s newest warning to introduce an further full import duty on items imported from China has been called a “prime illustration” of American hypocrisy, as stated by the Chinese government.

A representative of the ministry further commented that Beijing could enact its own unrevealed “retaliatory steps” if the White House occupant follows through on his threat, noting that the country was “not afraid” of a looming trade war.

On Friday, the former president responded at China’s decision to strengthen its rules for foreign shipments of rare earths, accusing China of “adopting a confrontational stance” and attempting to hold the world “hostage”.

Additionally, he threatened to pull out of a scheduled summit with China’s President Xi Jinping, which was set for a summit in Seoul later this month.

Trump’s comments on Friday rattled financial markets, with the benchmark US stock index dropping 2.7%, marking its biggest drop since earlier this year.

These statements reignited fears of a trade conflict between the United States and China.

Earlier this year, the both nations had consented to eliminate triple-digit tariffs on each other’s imports, which had created the possibility of trade halting between the two nations.

This left, United States levies on products from China facing an added 30% levy compared with the year’s onset, while US goods entering China face a ten percent duty.

The most recent comments from China – published by the relevant government department in the format of written responses to journalist’s questions – reflected terminology from the height of the latest commercial tensions.

The remarks condemned American limits on exports on chips and semi-conductors while justifying Beijing’s restrictions on exports on rare earth minerals as “normal actions” to ensure national security and that of every country.

Their representative remarked that for “many years”, the US had “overstretched the concept of domestic safety, abused overseas sale restrictions and “implemented” biased policies against China.

“Turning to” tariff threats is not the proper method to deal with Beijing,” the official commented.

“China’s position on a trade conflict has remained consistent: we wish to avoid one, but we are not afraid of one.”

The previous week, China declared it was reinforcing overseas sale regulations on key elements and additional substances vital for high-technology production.

This was seen as a key move, as the country handles about the vast majority of the world’s rare earths, which are used in products such as solar panels and handheld devices.

Latest statements from the US and China are being interpreted by observers as a strategy of enhancing bargaining power prior to upcoming negotiations.

Is not yet known whether a talks between the former president and China’s leader, scheduled at a conference in Seoul before month’s end, will go ahead.