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Donald Trump’s latest ultimatum to enforce an additional 100% tariff on Chinese goods has been called a “classic case” of American hypocrisy, per the China’s leadership.

A Commerce Ministry spokesperson also stated that China could enact its own undisclosed “retaliatory steps” if the American leader follows through on his warning, adding that the country was “not afraid” of a looming trade war.

This past Friday, Trump retaliated at China’s decision to reinforce its rules for exports of critical elements, charging Beijing of “becoming very hostile” and attempting to hold the world “hostage”.

Furthermore, he warned to pull out of a arranged summit with Beijing’s head of state Xi Jinping, which was set for a summit in the Republic of Korea in the coming weeks.

His statements on Friday rattled financial markets, with the S&P 500 share index closing down nearly three percent, marking its largest decline since April.

These statements renewed apprehensions of a commercial dispute between the two economic giants.

In May, the two sides had agreed to eliminate triple-digit tariffs on each other’s products, which had led to concerns of trade halting between the two nations.

Consequently, United States levies on Chinese goods subject to an extra import tax compared with the start of the year, while American products entering China incur a ten percent duty.

China’s latest remarks – published by the relevant government department in the format of official answers to journalist’s questions – reflected language from the height of the latest commercial tensions.

The remarks condemned United States controls on semiconductors and chips while justifying the country’s own export controls on rare earth minerals as “standard procedures” to ensure domestic safety and that of all nations.

The spokesperson said that for “a long time”, the US had “expanded the interpretation” of domestic safety, abused foreign shipment regulations and “enforced” unfair treatments against Beijing.

“Using” tariff threats is not the right way to deal with the Chinese government,” their representative stated.

“China’s position on a import duty dispute has always been consistent: we are not seeking one, but we are fearless of one.”

The previous week, the Chinese government announced it was reinforcing export controls on rare earth minerals and other materials critical for high-technology production.

This move was regarded as a key move, as the nation handles about 90% of the planet’s critical minerals, which are used in goods such as renewable energy components and smartphones.

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

Remains uncertain whether a talks between Trump and China’s leader, expected at a high-level meeting in Seoul later this month, will still proceed.