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The former US president’s latest ultimatum to impose an extra complete levy on items imported from China has been described as a “typical example” of United States’ contradictory behavior, according to the Chinese government.

A official from China’s Commerce Ministry additionally remarked that Beijing could enact its own unrevealed “retaliatory steps” if the American leader follows through on his pledge, emphasizing that the country was “fearless” of a looming commercial battle.

On Friday, Trump responded at China’s decision to reinforce its policies for foreign shipments of rare earths, charging the Chinese leadership of “turning aggressive” and attempting to hold the international market “captive”.

Furthermore, he warned to withdraw from a scheduled summit with Chinese leader Xi Jinping, which was arranged for a summit in Seoul before the month ends.

His statements on Friday shook global markets, with the S&P 500 share index dropping 2.7%, marking its biggest drop since last spring.

The president’s words reignited fears of a commercial dispute between the United States and China.

In May, the respective governments had consented to drop significant levies on each other’s goods, which had created the possibility of bilateral trade stopping between the two nations.

Consequently, US tariffs on products from China facing an added import tax compared with the year’s onset, while American products entering the country are subject to a ten percent duty.

China’s latest remarks – published by the Ministry of Commerce in the manner of formal replies to press queries – echoed rhetoric from the height of the ongoing trade dispute.

The remarks condemned US export restrictions on semiconductors and chips while justifying China’s own restrictions on exports on rare earth minerals as “normal actions” to ensure national security and that of the global community.

The spokesperson said that for “an extended period”, the United States had “overstretched the concept of domestic safety, abused overseas sale restrictions and “enforced” discriminatory practices against the Chinese nation.

“Resorting to import duty warnings is not the right way to deal with Beijing,” the spokesperson said.

“The nation’s view” on a import duty dispute has always been steady: we are not seeking one, but we are not afraid of one.”

The previous week, the Chinese government declared it was tightening export controls on rare earth minerals and other materials essential to advanced tech manufacturing.

This move was regarded as a significant step, as the state handles about ninety percent of the planet’s critical minerals, which are utilized in products such as photovoltaic modules and smartphones.

The recent comments from Washington and Beijing are being interpreted by some as a strategy of strengthening positions ahead of forthcoming discussions.

Is not yet known whether a summit between the former president and President Xi, expected at a summit in South Korea before month’s end, will go ahead.