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Trump’s latest warning to impose an further complete levy on products from China has been labeled a “typical example” of United States’ contradictory behavior, according to the China’s leadership.

A Commerce Ministry spokesperson additionally remarked that China could implement its own unspecified “retaliatory steps” if the US President follows through on his pledge, adding that the country was “unafraid” of a looming commercial battle.

On Friday, Trump retaliated at China’s decision to reinforce its rules for exports of rare earth minerals, alleging China of “adopting a confrontational stance” and attempting to hold the global community “hostage”.

He also warned to withdraw from a planned meeting with Beijing’s head of state Xi Jinping, which was set for a summit in South Korea in the coming weeks.

Trump’s comments on Friday unsettled financial markets, with the S&P 500 share index closing down 2.7%, marking its biggest drop since April.

These statements reignited fears of a trade conflict between the United States and China.

This past spring, the both nations had consented to eliminate significant levies on each other’s products, which had led to concerns of commerce ceasing between the two nations.

This left, American import duties on Chinese imports subject to an extra thirty percent tariff compared with the year’s onset, while items from the United States entering China incur a 10% tariff.

Beijing’s recent statements – published by the relevant government department in the format of official answers to journalist’s questions – echoed terminology from the zenith of the ongoing trade dispute.

Officials denounced American limits on exports on electronic components while supporting Beijing’s restrictions on exports on rare earth minerals as “standard procedures” to ensure domestic safety and that of every country.

The official said that for “an extended period”, the America had “broadened the definition” of state security, abused export control measures and “implemented” biased policies against the Chinese nation.

“Using” tariff threats is not the right way to engage with Beijing,” the official said.

“The nation’s view” on a trade conflict has remained steady: we wish to avoid one, but we are not afraid of one.”

Last week, the Chinese government revealed it was strengthening foreign shipment restrictions on rare earth minerals and further resources essential to cutting-edge industry.

This move was regarded as a significant step, as the nation refines about ninety percent of the global rare earth supply, which are employed in products such as solar panels and smartphones.

The recent comments from the US and China are being viewed by analysts as a method of enhancing bargaining power ahead of future trade talks.

Is not yet known whether a summit between Trump and China’s leader, scheduled at a conference in Seoul before month’s end, will go ahead.