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Trump’s latest warning to impose an extra complete levy on items imported from China has been labeled a “prime illustration” of American hypocrisy, per the China’s leadership.

A official from China’s Commerce Ministry further commented that Beijing could implement its own unrevealed “retaliatory steps” if the White House occupant carries out his warning, adding that the country was “not afraid” of a potential commercial battle.

Last Friday, the former president hit back at the Chinese government’s action to reinforce its rules for exports of rare earth minerals, charging China of “turning aggressive” and attempting to hold the international market “hostage”.

He also warned to cancel a arranged summit with Chinese leader Xi Jinping, which was arranged for a conference in the Republic of Korea later this month.

The former president’s remarks on last Friday unsettled financial markets, with the S&P 500 falling by 2.7%, marking its steepest fall since earlier this year.

His comments reignited fears of a trade war between the US and China.

Earlier this year, the two sides had reached an agreement to remove high import duties on each other’s products, which had created the possibility of commerce ceasing between the two countries.

As a result, US tariffs on products from China facing an extra 30% levy compared with the start of the year, while items from the United States entering the Chinese market face a import levy.

The most recent comments from China – published by the Commerce Ministry in the form of formal replies to media inquiries – mirrored rhetoric from the height of the ongoing trade dispute.

They criticised American limits on exports on electronic components while supporting the country’s own restrictions on exports on rare earths as “standard procedures” to protect national security and that of all nations.

Their representative remarked that for “many years”, the US had “overstretched the concept of national security, misused foreign shipment regulations and “enforced” unfair treatments against Beijing.

“Using” trade levy ultimatums is not the proper method to deal with the Chinese government,” their representative commented.

“The nation’s view” on a tariff war has remained unchanging: we are not seeking one, but we are not afraid of one.”

Last week, China declared it was reinforcing foreign shipment restrictions on rare earth minerals and other materials vital for high-technology production.

This move was regarded as a significant step, as the country handles about the vast majority of the planet’s critical minerals, which are used in items such as solar panels and mobile phones.

New remarks from Washington and Beijing are being viewed by observers as a strategy of enhancing bargaining power ahead of future trade talks.

It is unclear whether a summit between Trump and Xi Jinping, scheduled at a summit in the Republic of Korea in the coming weeks, will take place as planned.