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Trump’s most recent warning to introduce an additional full import duty on products from China has been called a “prime illustration” of American hypocrisy, according to the China’s leadership.

A Commerce Ministry spokesperson also stated that China could implement its own unspecified “retaliatory steps” if the American leader executes his threat, noting that the country was “not afraid” of a looming trade war.

Last Friday, Donald Trump hit back at Beijing’s move to reinforce its regulations for overseas sales of rare earth minerals, alleging the Chinese leadership of “becoming very hostile” and attempting to hold the world “under its control”.

He also threatened to withdraw from a scheduled summit with China’s President President Xi, which was set for a conference in South Korea later this month.

Trump’s comments on Friday rattled stock exchanges, with the benchmark US stock index falling by 2.7%, marking its steepest fall since earlier this year.

The president’s words reignited concerns of a commercial dispute between the United States and China.

This past spring, the two sides had reached an agreement to drop significant levies on each other’s products, which had created the possibility of commerce ceasing between the two nations.

This left, US tariffs on Chinese imports incurring an extra import tax compared with the start of the year, while US goods entering China face a 10% tariff.

Beijing’s recent statements – issued by the Commerce Ministry in the form of written responses to media inquiries – mirrored terminology from the peak of the latest commercial tensions.

They criticised US export restrictions on chips and semi-conductors while justifying Beijing’s export controls on key elements as “standard procedures” to safeguard domestic safety and that of all nations.

Their representative said that for “many years”, the US had “expanded the interpretation” of national security, exploited export control measures and “implemented” unfair treatments against the Chinese nation.

“Turning to” tariff threats is not the right way to interact with the Chinese government,” the spokesperson said.

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

The previous week, the Chinese government revealed it was tightening export controls on rare earths and additional substances vital for high-technology production.

This was seen as a important measure, as the country handles about 90% of the planet’s critical minerals, which are utilized in goods such as renewable energy components and smartphones.

New remarks from Washington and Beijing are being interpreted by observers as a means of enhancing bargaining power ahead of future trade talks.

It is unclear whether a talks between Trump and President Xi, expected at a conference in South Korea in the coming weeks, will still proceed.