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Donald Trump’s most recent warning to introduce an extra full import duty on items imported from China has been labeled a “typical example” of United States’ contradictory behavior, according to the Chinese government.

A Commerce Ministry spokesperson additionally remarked that Beijing could enact its own unrevealed “retaliatory steps” if the US President follows through on his warning, emphasizing that the country was “not afraid” of a looming trade war.

This past Friday, Donald Trump responded at Beijing’s move to strengthen its rules for overseas sales of rare earths, charging the Chinese leadership of “adopting a confrontational stance” and attempting to hold the world “captive”.

He also threatened to withdraw from a arranged talks with China’s President President Xi, which was set for a meeting in South Korea later this month.

His statements on Friday shook financial markets, with the S&P 500 share index falling by nearly three percent, marking its largest decline since last spring.

These statements reignited apprehensions of a trade conflict between the United States and China.

In May, the two sides had agreed to remove triple-digit tariffs on each other’s goods, which had created the possibility of bilateral trade stopping between the two nations.

As a result, American import duties on Chinese goods subject to an extra import tax compared with the start of the year, while US goods entering the Chinese market are subject to a ten percent duty.

China’s latest remarks – published by the Ministry of Commerce in the format of official answers to journalist’s questions – echoed rhetoric from the height of the latest commercial tensions.

The remarks condemned US export restrictions on electronic components while supporting China’s own export controls on rare earths as “normal actions” to protect state interests and that of all nations.

The official said that for “an extended period”, the America had “expanded the interpretation” of national security, exploited foreign shipment regulations and “enforced” unfair treatments against Beijing.

“Turning to” import duty warnings is not the right way to interact with the Chinese government,” the spokesperson stated.

“Beijing’s stance” on a import duty dispute has consistently been consistent: we wish to avoid one, but we are unafraid of one.”

Last week, China announced it was reinforcing overseas sale regulations on key elements and additional substances critical for cutting-edge industry.

The action was viewed as a key move, as the nation handles about 90% of the world’s rare earths, which are employed in goods such as photovoltaic modules and mobile phones.

The recent comments from the US and China are being interpreted by some as a method of enhancing bargaining power in preparation for future trade talks.

It is unclear whether a summit between Trump and Xi Jinping, planned at a high-level meeting in the Republic of Korea in the coming weeks, will still proceed.