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The former US president’s newest threat to introduce an additional complete levy on items imported from China has been called a “prime illustration” of American hypocrisy, as stated by the Chinese government.

A official from China’s Commerce Ministry further commented that China could introduce its own undisclosed “retaliatory steps” if the American leader follows through on his pledge, emphasizing that the country was “fearless” of a potential commercial battle.

On Friday, the former president retaliated at China’s decision to strengthen its policies for foreign shipments of rare earth minerals, accusing Beijing of “becoming very hostile” and attempting to hold the world “hostage”.

Additionally, he warned to pull out of a scheduled summit with Chinese leader President Xi, which was arranged for a conference in Seoul before the month ends.

The former president’s remarks on that day rattled stock exchanges, with the S&P 500 share index falling by 2.7%, marking its largest decline since last spring.

These statements reignited apprehensions of a commercial dispute between the United States and China.

In May, the both nations had agreed to remove triple-digit tariffs on each other’s products, which had created the possibility of trade halting between the two countries.

As a result, United States levies on products from China facing an added 30% levy compared with the beginning of 2025, while US goods entering China are subject to a ten percent duty.

China’s latest remarks – released by the Ministry of Commerce in the manner of written responses to press queries – echoed language from the peak of the recent trade conflict.

Officials denounced United States controls on electronic components while justifying the country’s own restrictions on exports on rare earths as “routine measures” to protect domestic safety and that of every country.

The spokesperson said that for “an extended period”, the America had “expanded the interpretation” of national security, misused overseas sale restrictions and “implemented” discriminatory practices against China.

“Resorting to trade levy ultimatums is not the correct approach to interact with China,” the spokesperson stated.

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

The previous week, China declared it was reinforcing foreign shipment restrictions on rare earths and additional substances essential to cutting-edge industry.

This was seen as a significant step, as the state refines about 90% of the world’s rare earths, which are employed in items such as solar panels and handheld devices.

Latest statements from the US and China are being viewed by analysts as a method of enhancing bargaining power in preparation for future trade talks.

Is not yet known whether a meeting between Donald Trump and President Xi, scheduled at a high-level meeting in the Republic of Korea before month’s end, will still proceed.