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The former US president’s latest warning to impose an further 100% tariff on Chinese goods has been called a “classic case” of United States’ contradictory behavior, according to the Chinese government.

A official from China’s Commerce Ministry additionally remarked that the nation could introduce its own unrevealed “retaliatory steps” if the American leader carries out his pledge, emphasizing that the country was “unafraid” of a possible commercial battle.

Last Friday, Trump retaliated at China’s decision to strengthen its regulations for exports of rare earth minerals, charging China of “adopting a confrontational stance” and attempting to hold the global community “hostage”.

He also warned to cancel a scheduled summit with Chinese leader Xi Jinping, which was set for a conference in South Korea later this month.

Trump’s comments on last Friday rattled financial markets, with the benchmark US stock index dropping 2.7%, marking its largest decline since earlier this year.

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

In May, the both nations had consented to drop significant levies on each other’s imports, which had led to concerns of bilateral trade stopping between the two nations.

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

Beijing’s recent statements – published by the relevant government department in the form of written responses to media inquiries – reflected terminology from the height of the ongoing trade dispute.

They criticised American limits on exports on electronic components while justifying Beijing’s overseas sale regulations on rare earths as “routine measures” to ensure national security and that of all nations.

The official said that for “many years”, the US had “expanded the interpretation” of national security, abused foreign shipment regulations and “adopted unfair treatments against China.

“Resorting to trade levy ultimatums is not the right way to interact with China,” the spokesperson commented.

“Beijing’s stance” on a tariff war has remained consistent: we wish to avoid one, but we are fearless of one.”

The previous week, China declared it was tightening export controls on key elements and further resources essential to advanced tech manufacturing.

This move was regarded as a key move, as the country refines about the vast majority of the world’s rare earths, which are employed in items such as solar panels and mobile phones.

Latest statements from the US and China are being interpreted by some as a means of strengthening positions prior to upcoming negotiations.

It is unclear whether a meeting between the former president and President Xi, expected at a high-level meeting in Seoul before month’s end, will still proceed.