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Trump’s latest threat to impose an additional full import duty on items imported from China has been labeled a “classic case” of American hypocrisy, according to the Beijing administration.

A Commerce Ministry spokesperson further commented that the nation could implement its own undisclosed “retaliatory steps” if the US President carries out his warning, noting that the country was “unafraid” of a looming trade conflict.

On Friday, Trump retaliated at Beijing’s move to tighten its policies for exports of rare earths, accusing China of “becoming very hostile” and attempting to hold the international market “under its control”.

Additionally, he threatened to cancel a planned talks with Chinese leader President Xi, which was expected to take place during a summit in South Korea before the month ends.

His statements on last Friday unsettled financial markets, with the benchmark US stock index dropping over two and a half percent, marking its biggest drop since last spring.

These statements renewed fears of a commercial dispute between the United States and China.

Earlier this year, the respective governments had reached an agreement to remove triple-digit tariffs on each other’s imports, which had created the possibility of bilateral trade stopping between the two countries.

Consequently, American import duties on products from China subject to an extra import tax compared with the year’s onset, while items from the United States entering China incur a import levy.

Beijing’s recent statements – issued by the Commerce Ministry in the format of formal replies to press queries – echoed terminology from the height of the recent trade conflict.

They criticised American limits on exports on semiconductors and chips while defending China’s own export controls on rare earth minerals as “standard procedures” to safeguard national security and that of the global community.

The official remarked that for “many years”, the United States had “broadened the definition” of national security, abused foreign shipment regulations and “enforced” biased policies against Beijing.

“Resorting to import duty warnings is not the proper method to engage with Beijing,” the official stated.

“Beijing’s stance” on a import duty dispute has always been consistent: we do not want one, but we are fearless of one.”

Recently, Beijing declared it was tightening export controls on rare earth minerals and other materials critical for high-technology production.

This move was regarded as a key move, as the nation handles about the vast majority of the planet’s critical minerals, which are used in items such as renewable energy components and mobile phones.

New remarks from both governments 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 Xi Jinping, expected at a high-level meeting in Seoul later this month, will go ahead.