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Trump’s newest threat to introduce an further 100% tariff on products from China has been labeled a “classic case” of United States’ contradictory behavior, as stated by the China’s leadership.

A representative of the ministry further commented that Beijing could implement its own undisclosed “retaliatory steps” if the White House occupant carries out his warning, noting that the country was “fearless” of a potential trade war.

This past Friday, Donald Trump retaliated at the Chinese government’s action to reinforce its rules for overseas sales of rare earth minerals, alleging Beijing of “adopting a confrontational stance” and attempting to hold the international market “hostage”.

Furthermore, he vowed to withdraw from a arranged summit with Chinese leader President Xi, which was expected to take place during a meeting in the Republic of Korea in the coming weeks.

Trump’s comments on Friday unsettled global markets, with the S&P 500 share index dropping over two and a half percent, marking its biggest drop since earlier this year.

His comments reignited fears of a commercial dispute between the two economic giants.

This past spring, the both nations had reached an agreement to eliminate triple-digit tariffs on each other’s products, which had led to concerns of bilateral trade stopping between the economic powers.

As a result, US tariffs on Chinese imports facing an additional 30% levy compared with the start of the year, while US goods entering the country are subject to a ten percent duty.

China’s latest remarks – issued by the relevant government department in the manner of written responses to media inquiries – mirrored terminology from the zenith of the recent trade conflict.

They criticised US export restrictions on chips and semi-conductors while supporting Beijing’s export controls on rare earth minerals as “routine measures” to ensure state interests and that of all nations.

The spokesperson stated that for “an extended period”, the US had “expanded the interpretation” of domestic safety, exploited foreign shipment regulations and “enforced” unfair treatments against China.

“Resorting to import duty warnings is not the correct approach to deal with Beijing,” the official commented.

“China’s position on a tariff war has remained steady: we wish to avoid one, but we are unafraid of one.”

The previous week, China announced it was strengthening overseas sale regulations on key elements and further resources vital for advanced tech manufacturing.

The action was viewed as a significant step, as the country handles about 90% of the global rare earth supply, which are used in items such as photovoltaic modules and smartphones.

Latest statements from Washington and Beijing are being viewed by analysts as a strategy of bolstering negotiating stances in preparation for future trade talks.

Remains uncertain whether a talks between Donald Trump and Xi Jinping, planned at a summit in South Korea later this month, will go ahead.