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Trump’s most recent ultimatum to introduce an further 100% tariff on products from China has been labeled a “prime illustration” of American hypocrisy, as stated by the Chinese government.

A Commerce Ministry spokesperson additionally remarked that China could implement its own unspecified “countermeasures” if the US President carries out his threat, noting that the country was “not afraid” of a potential trade war.

On Friday, Donald Trump responded at the Chinese government’s action to reinforce its policies for exports of rare earth minerals, alleging the Chinese leadership of “becoming very hostile” and attempting to hold the world “hostage”.

Furthermore, he vowed to pull out of a planned meeting with Beijing’s head of state Xi, which was set for a summit in South Korea in the coming weeks.

His statements on Friday shook financial markets, with the S&P 500 share index closing down 2.7%, marking its largest decline since April.

His comments renewed fears of a trade war between the US and China.

This past spring, the respective governments had consented to remove triple-digit tariffs on each other’s goods, which had raised the prospect of bilateral trade stopping between the two countries.

As a result, US tariffs on Chinese imports facing an extra thirty percent tariff compared with the year’s onset, while US goods entering the country are subject to a import levy.

Beijing’s recent statements – released by the Ministry of Commerce in the manner of written responses to press queries – mirrored rhetoric from the peak of the ongoing trade dispute.

They criticised US export restrictions on semiconductors and chips while defending the country’s own overseas sale regulations on rare earths as “normal actions” to ensure national security and that of all nations.

The spokesperson stated that for “an extended period”, the America had “overstretched the concept of national security, exploited overseas sale restrictions and “enforced” discriminatory practices against Beijing.

“Using” trade levy ultimatums is not the correct approach to engage with Beijing,” their representative commented.

“The nation’s view” on a trade conflict has remained steady: we do not want one, but we are fearless of one.”

The previous week, China announced it was strengthening overseas sale regulations on rare earth minerals and further resources vital for cutting-edge industry.

This was seen as a important measure, as the country refines about the vast majority of the planet’s critical minerals, which are used in goods such as photovoltaic modules and mobile phones.

The recent comments from Washington and Beijing are being interpreted by analysts as a method of strengthening positions in preparation for future trade talks.

Remains uncertain whether a talks between Trump and China’s leader, expected at a summit in the Republic of Korea in the coming weeks, will go ahead.