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Trump’s most recent ultimatum to impose an extra complete levy on products 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 Beijing could enact its own undisclosed “retaliatory steps” if the US President carries out his threat, noting that the country was “unafraid” of a looming commercial battle.

Last Friday, Donald Trump retaliated at Beijing’s move to strengthen its rules for overseas sales of rare earth minerals, accusing China of “adopting a confrontational stance” and attempting to hold the world “hostage”.

Furthermore, he vowed to withdraw from a arranged meeting with Beijing’s head of state Xi Jinping, which was expected to take place during a summit in South Korea before the month ends.

His statements on Friday shook financial markets, with the benchmark US stock index falling by 2.7%, marking its largest decline since April.

These statements revived fears of a trade war between the US and China.

Earlier this year, the two sides had reached an agreement to remove high import duties on each other’s goods, which had raised the prospect of bilateral trade stopping between the two nations.

Consequently, United States levies on Chinese imports facing an additional import tax compared with the beginning of 2025, while US goods entering China incur a 10% tariff.

Beijing’s recent statements – issued by the relevant government department in the format of official answers to media inquiries – mirrored rhetoric from the peak of the recent trade conflict.

Officials denounced US export restrictions on chips and semi-conductors while supporting China’s own export controls on rare earth minerals as “standard procedures” to protect national security and that of all nations.

Their representative stated that for “a long time”, the US had “broadened the definition” of state security, abused foreign shipment regulations and “adopted biased policies against the Chinese nation.

“Turning to” tariff threats is not the right way to deal with China,” the spokesperson stated.

“Beijing’s stance” on a trade conflict has consistently been unchanging: we are not seeking one, but we are not afraid of one.”

The previous week, China announced it was reinforcing export controls on key elements and other materials critical for advanced tech manufacturing.

This was seen as a significant step, as the country handles about ninety percent of the planet’s critical minerals, which are used in items such as solar panels and smartphones.

Latest statements from Washington and Beijing are being interpreted by analysts as a method of bolstering negotiating stances ahead of upcoming negotiations.

Remains uncertain whether a meeting between Donald Trump and President Xi, scheduled at a conference in the Republic of Korea before month’s end, will go ahead.