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Trump’s latest warning to introduce an additional complete levy on items imported from China has been called a “prime illustration” of United States’ contradictory behavior, per the Beijing administration.

A official from China’s Commerce Ministry further commented that China could enact its own undisclosed “retaliatory steps” if the US President follows through on his warning, adding that the country was “not afraid” of a looming trade war.

Last Friday, Donald Trump responded at China’s decision to strengthen its policies for overseas sales of rare earths, accusing the Chinese leadership of “becoming very hostile” and attempting to hold the global community “hostage”.

Furthermore, he warned to pull out of a planned summit with China’s President Xi Jinping, which was set for a conference in South Korea later this month.

Trump’s comments on Friday shook global markets, with the S&P 500 share index dropping 2.7%, marking its biggest drop since April.

These statements reignited apprehensions of a commercial dispute between the US and China.

In May, the respective governments had reached an agreement to remove high import duties on each other’s imports, which had led to concerns of trade halting between the economic powers.

This left, American import duties on products from China facing an extra import tax compared with the year’s onset, while items from the United States entering China are subject to a 10% tariff.

Beijing’s recent statements – issued by the Ministry of Commerce in the manner of written responses to press queries – echoed rhetoric from the peak of the recent trade conflict.

The remarks condemned American limits on exports on electronic components while defending China’s own overseas sale regulations on rare earth minerals as “standard procedures” to ensure state interests and that of all nations.

Their representative said that for “an extended period”, the America had “broadened the definition” of state security, exploited foreign shipment regulations and “enforced” biased policies against the Chinese nation.

“Turning to” import duty warnings is not the right way to deal with China,” the official stated.

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

Last week, China revealed it was reinforcing overseas sale regulations on rare earths and other materials critical for high-technology production.

This move was regarded as a key move, as the nation handles about the vast majority of the planet’s critical minerals, which are employed in goods such as photovoltaic modules and smartphones.

New remarks from Washington and Beijing are being seen by observers as a means of strengthening positions in preparation for future trade talks.

It is unclear whether a summit between Donald Trump and China’s leader, scheduled at a conference in Seoul in the coming weeks, will take place as planned.