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Trump’s most recent ultimatum to impose an further 100% tariff on Chinese goods has been labeled a “typical example” of American hypocrisy, according to the Chinese government.

A official from China’s Commerce Ministry additionally remarked that China could implement its own unrevealed “responsive actions” if the American leader executes his pledge, adding that the country was “not afraid” of a looming commercial battle.

This past Friday, Donald Trump responded at the Chinese government’s action to reinforce its rules for exports of rare earths, charging China of “turning aggressive” and attempting to hold the international market “under its control”.

Furthermore, he vowed to withdraw from a scheduled meeting with Beijing’s head of state Xi Jinping, which was set for a meeting in South Korea before the month ends.

The former president’s remarks on Friday unsettled financial markets, with the S&P 500 share index closing down nearly three percent, marking its largest decline since last spring.

His comments revived fears of a trade war between the two economic giants.

Earlier this year, the both nations had consented to drop triple-digit tariffs on each other’s goods, which had led to concerns of bilateral trade stopping between the two countries.

This left, US tariffs on products from China incurring an added 30% levy compared with the year’s onset, while items from the United States entering the Chinese market are subject to a 10% tariff.

China’s latest remarks – published by the relevant government department in the manner of written responses to media inquiries – reflected language from the zenith of the ongoing trade dispute.

They criticised American limits on exports on chips and semi-conductors while defending Beijing’s export controls on rare earths as “routine measures” to ensure domestic safety and that of all nations.

The spokesperson said that for “an extended period”, the America had “overstretched the concept of domestic safety, abused export control measures and “enforced” biased policies against China.

“Resorting to trade levy ultimatums is not the proper method to deal with Beijing,” their representative said.

“Beijing’s stance” on a trade conflict has always been unchanging: we are not seeking one, but we are not afraid of one.”

Last week, Beijing declared it was strengthening foreign shipment restrictions on rare earths and further resources vital for advanced tech manufacturing.

This move was regarded as a significant step, as the country handles about the vast majority of the planet’s critical minerals, which are utilized in products such as renewable energy components and mobile phones.

Latest statements from both governments are being seen by analysts as a means of enhancing bargaining power ahead of upcoming negotiations.

It is unclear whether a meeting between the former president and President Xi, planned at a summit in the Republic of Korea in the coming weeks, will take place as planned.