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Trump’s latest ultimatum to introduce an extra 100% tariff on Chinese goods has been described as a “classic case” of American hypocrisy, according to the China’s leadership.

A Commerce Ministry spokesperson further commented that Beijing could enact its own undisclosed “responsive actions” if the American leader carries out his pledge, adding that the country was “unafraid” of a possible commercial battle.

On Friday, Trump retaliated at the Chinese government’s action to reinforce its policies for overseas sales of critical elements, alleging China of “adopting a confrontational stance” and attempting to hold the world “hostage”.

He also vowed to pull out of a planned meeting with China’s President Xi Jinping, which was set for a summit in South Korea in the coming weeks.

His statements on Friday shook financial markets, with the benchmark US stock index falling by nearly three percent, marking its largest decline since earlier this year.

The president’s words revived concerns of a trade war between the US and China.

This past spring, the two sides had consented to remove significant levies on each other’s goods, which had created the possibility of trade halting between the two countries.

As a result, United States levies on Chinese goods facing an added 30% levy compared with the year’s onset, while items from the United States entering China face a 10% tariff.

Beijing’s recent statements – released by the relevant government department in the manner of official answers to journalist’s questions – echoed terminology from the peak of the latest commercial tensions.

Officials denounced American limits on exports on chips and semi-conductors while justifying the country’s own export controls on rare earth minerals as “standard procedures” to ensure national security and that of all nations.

The spokesperson remarked that for “an extended period”, the US had “expanded the interpretation” of national security, misused export control measures and “adopted discriminatory practices against the Chinese nation.

“Resorting to import duty warnings is not the right way to deal with the Chinese government,” their representative said.

“Beijing’s stance” on a import duty dispute has remained consistent: we do not want one, but we are fearless of one.”

Last week, China declared it was reinforcing foreign shipment restrictions on rare earths and further resources critical for cutting-edge industry.

This was seen as a significant step, as the nation refines about ninety percent of the global rare earth supply, which are utilized in goods such as renewable energy components and mobile phones.

The recent comments from both governments are being viewed by observers as a method of enhancing bargaining power ahead of forthcoming discussions.

It is unclear whether a summit between Donald Trump and China’s leader, planned at a summit in the Republic of Korea in the coming weeks, will go ahead.