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Trump’s latest warning to enforce an further 100% tariff on Chinese goods has been called a “prime illustration” of American hypocrisy, according to the China’s leadership.

A official from China’s Commerce Ministry additionally remarked that Beijing could introduce its own unrevealed “responsive actions” if the US President executes his threat, adding that the country was “unafraid” of a looming commercial battle.

On Friday, Trump hit back at China’s decision to reinforce its rules for overseas sales of rare earths, charging Beijing of “becoming very hostile” and attempting to hold the international market “hostage”.

Furthermore, he threatened to withdraw from a planned talks with China’s President Xi Jinping, which was set for a conference in South Korea later this month.

The former president’s remarks on Friday unsettled stock exchanges, with the S&P 500 closing down over two and a half percent, marking its steepest fall since April.

These statements reignited apprehensions of a trade war between the US and China.

Earlier this year, the two sides had consented to eliminate high import duties on each other’s imports, which had created the possibility of commerce ceasing between the economic powers.

This left, United States levies on Chinese goods subject to an added import tax compared with the beginning of 2025, while US goods entering China face a ten percent duty.

China’s latest remarks – published by the relevant government department in the form of formal replies to press queries – reflected language from the zenith of the ongoing trade dispute.

The remarks condemned American limits on exports on chips and semi-conductors while supporting the country’s own export controls on rare earths as “routine measures” to safeguard national security and that of every country.

The official stated that for “a long time”, the United States had “expanded the interpretation” of national security, abused export control measures and “enforced” discriminatory practices against China.

“Turning to” trade levy ultimatums is not the correct approach to engage with Beijing,” the spokesperson said.

“Beijing’s stance” on a import duty dispute has always been unchanging: we wish to avoid one, but we are not afraid of one.”

Last week, the Chinese government declared it was reinforcing foreign shipment restrictions on key elements and additional substances critical for high-technology production.

This move was regarded as a important measure, as the state refines about 90% 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 seen by analysts as a strategy of strengthening positions in preparation for future trade talks.

Remains uncertain whether a talks between Donald Trump and Xi Jinping, scheduled at a summit in South Korea later this month, will still proceed.