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The former US president’s most recent ultimatum to impose an extra complete levy on products from China has been labeled a “classic case” of American hypocrisy, according to the Chinese government.

A official from China’s Commerce Ministry further commented that Beijing could implement its own unspecified “retaliatory steps” if the US President carries out his threat, adding that the country was “unafraid” of a looming commercial battle.

On Friday, Donald Trump hit back at China’s decision to strengthen its rules for overseas sales of rare earth minerals, alleging China of “becoming very hostile” and attempting to hold the international market “under its control”.

Furthermore, he warned to withdraw from a scheduled meeting with Beijing’s head of state President Xi, which was arranged for a summit in the Republic of Korea in the coming weeks.

His statements on last Friday rattled financial markets, with the S&P 500 dropping over two and a half percent, marking its largest decline since last spring.

His comments revived apprehensions of a trade conflict between the US and China.

Earlier this year, the both nations had reached an agreement to eliminate triple-digit tariffs on each other’s goods, which had raised the prospect of bilateral trade stopping between the two countries.

This left, United States levies on Chinese imports facing an additional thirty percent tariff compared with the beginning of 2025, while items from the United States entering the Chinese market face a import levy.

Beijing’s recent statements – issued by the Commerce Ministry in the format of official answers to press queries – echoed rhetoric from the peak of the ongoing trade dispute.

Officials denounced United States controls on semiconductors and chips while defending China’s own export controls on rare earths as “standard procedures” to ensure national security and that of every country.

The spokesperson said that for “many years”, the United States had “overstretched the concept of national security, misused export control measures and “enforced” discriminatory practices against Beijing.

“Turning to” import duty warnings is not the right way to interact with China,” the official said.

“The nation’s view” on a trade conflict has consistently been steady: we wish to avoid one, but we are not afraid of one.”

The previous week, Beijing declared it was tightening foreign shipment restrictions on rare earth minerals and additional substances essential to cutting-edge industry.

This was seen as a significant step, as the nation processes about the vast majority of the global rare earth supply, which are employed in products such as photovoltaic modules and handheld devices.

New remarks from the US and China are being interpreted by analysts as a strategy of bolstering negotiating stances in preparation for future trade talks.

Remains uncertain whether a meeting between Donald Trump and President Xi, planned at a high-level meeting in South Korea in the coming weeks, will still proceed.