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Donald Trump’s latest ultimatum to impose an additional complete levy on products from China has been called a “prime illustration” of American hypocrisy, as stated by the China’s leadership.

A official from China’s Commerce Ministry also stated that Beijing could implement its own unspecified “retaliatory steps” if the White House occupant executes his pledge, emphasizing that the country was “unafraid” of a potential trade conflict.

On Friday, the former president hit back at China’s decision to reinforce its policies for overseas sales of critical elements, accusing China of “becoming very hostile” and attempting to hold the international market “under its control”.

He also vowed to pull out of a planned meeting with China’s President President Xi, which was arranged for a summit in South Korea later this month.

The former president’s remarks on Friday shook financial markets, with the S&P 500 closing down 2.7%, marking its steepest fall since last spring.

The president’s words reignited apprehensions of a trade war between the US and China.

Earlier this year, the two sides had reached an agreement to drop significant levies on each other’s products, which had raised the prospect of trade halting between the economic powers.

As a result, American import duties on Chinese imports facing an extra 30% levy compared with the year’s onset, while US goods entering China face a import levy.

The most recent comments from China – issued by the Ministry of Commerce in the manner of written responses to media inquiries – reflected terminology from the peak of the ongoing trade dispute.

They criticised American limits on exports on semiconductors and chips while justifying Beijing’s restrictions on exports on rare earth minerals as “routine measures” to ensure state interests and that of every country.

The official stated that for “many years”, the United States had “expanded the interpretation” of national security, abused export control measures and “implemented” biased policies against China.

“Resorting to import duty warnings is not the correct approach to interact with Beijing,” their representative stated.

“Beijing’s stance” on a tariff war has remained steady: we are not seeking one, but we are fearless of one.”

The previous week, China revealed it was tightening overseas sale regulations on rare earth minerals and further resources essential to advanced tech manufacturing.

This move was regarded as a important measure, as the state processes about ninety percent of the global rare earth supply, which are utilized in products such as solar panels and handheld devices.

New remarks from both governments are being interpreted by observers as a strategy of bolstering negotiating stances ahead of upcoming negotiations.

It is unclear whether a meeting between the former president and President Xi, scheduled at a high-level meeting in South Korea before month’s end, will still proceed.