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Trump’s latest ultimatum to enforce an extra 100% tariff on items imported from China has been described as a “typical example” of United States’ contradictory behavior, according to the Chinese government.

A official from China’s Commerce Ministry also stated that the nation could enact its own unspecified “retaliatory steps” if the White House occupant carries out his pledge, emphasizing that the country was “not afraid” of a possible trade conflict.

On Friday, Trump hit back at Beijing’s move to reinforce its policies for exports of rare earth minerals, alleging Beijing of “adopting a confrontational stance” and attempting to hold the international market “hostage”.

Furthermore, he warned to cancel a arranged summit with Beijing’s head of state Xi, which was set for a meeting in Seoul in the coming weeks.

Trump’s comments on Friday rattled stock exchanges, with the benchmark US stock index dropping 2.7%, marking its largest decline since last spring.

These statements revived apprehensions of a trade conflict between the two economic giants.

In May, the two sides had consented to remove high import duties on each other’s imports, which had created the possibility of trade halting between the two countries.

This left, US tariffs on Chinese goods subject to an added 30% levy compared with the year’s onset, while American products entering the Chinese market are subject to a 10% tariff.

China’s latest remarks – issued by the Commerce Ministry in the manner of formal replies to media inquiries – reflected rhetoric from the zenith of the ongoing trade dispute.

The remarks condemned American limits on exports on semiconductors and chips while defending Beijing’s export controls on rare earth minerals as “routine measures” to safeguard domestic safety and that of every country.

Their representative stated that for “a long time”, the America had “broadened the definition” of domestic safety, exploited export control measures and “enforced” discriminatory practices against Beijing.

“Turning to” import duty warnings is not the proper method to engage with Beijing,” the spokesperson said.

“Beijing’s stance” on a tariff war has always been consistent: we do not want one, but we are fearless of one.”

Recently, the Chinese government revealed it was tightening foreign shipment restrictions on rare earths and further resources critical for cutting-edge industry.

This move was regarded as a key move, as the state refines about 90% of the world’s rare earths, which are employed in items such as renewable energy components and smartphones.

The recent comments from both governments are being viewed by some as a strategy of bolstering negotiating stances ahead of upcoming negotiations.

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