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Trump’s latest threat to impose an extra 100% tariff on Chinese goods has been labeled a “typical example” of United States’ contradictory behavior, as stated by the Chinese government.

A official from China’s Commerce Ministry also stated that China could implement its own undisclosed “retaliatory steps” if the US President follows through on his threat, noting that the country was “not afraid” of a potential trade conflict.

Last Friday, the former president retaliated at the Chinese government’s action to strengthen its rules for exports of rare earth minerals, charging China of “becoming very hostile” and attempting to hold the global community “captive”.

He also vowed to withdraw from a scheduled summit with Chinese leader Xi, which was arranged for a conference in Seoul before the month ends.

Trump’s comments on Friday rattled financial markets, with the benchmark US stock index dropping nearly three percent, marking its steepest fall since April.

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

In May, the respective governments had reached an agreement to eliminate significant levies on each other’s goods, which had created the possibility of bilateral trade stopping between the two countries.

As a result, US tariffs on products from China facing an added thirty percent tariff compared with the start of the year, while items from the United States entering the country are subject to a import levy.

The most recent comments from China – issued by the Ministry of Commerce in the form of formal replies to journalist’s questions – reflected terminology from the zenith of the ongoing trade dispute.

Officials denounced US export restrictions on semiconductors and chips while defending Beijing’s export controls on rare earths as “routine measures” to safeguard national security and that of all nations.

The official stated that for “an extended period”, the US had “broadened the definition” of domestic safety, abused foreign shipment regulations and “enforced” unfair treatments against the Chinese nation.

“Turning to” trade levy ultimatums is not the correct approach to interact with the Chinese government,” their representative commented.

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

Recently, China revealed it was tightening foreign shipment restrictions on rare earths and other materials critical for cutting-edge industry.

This was seen as a important measure, as the country handles about ninety percent of the global rare earth supply, which are utilized in products such as renewable energy components and smartphones.

New remarks from both governments are being interpreted by some as a method of enhancing bargaining power prior to future trade talks.

It is unclear whether a talks between Trump and Xi Jinping, scheduled at a high-level meeting in South Korea later this month, will take place as planned.