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Donald Trump’s most recent threat to impose an additional full import duty on products from China has been described as a “classic case” of American hypocrisy, per the Chinese government.

A Commerce Ministry spokesperson further commented that the nation could introduce its own undisclosed “retaliatory steps” if the White House occupant follows through on his pledge, noting that the country was “unafraid” of a possible trade war.

On Friday, Trump responded at China’s decision to tighten its policies for overseas sales of rare earths, alleging the Chinese leadership of “adopting a confrontational stance” and attempting to hold the global community “hostage”.

He also vowed to withdraw from a scheduled summit with Beijing’s head of state President Xi, which was expected to take place during a meeting in the Republic of Korea in the coming weeks.

His statements on Friday shook stock exchanges, with the benchmark US stock index dropping nearly three percent, marking its biggest drop since earlier this year.

These statements reignited concerns of a trade conflict between the two economic giants.

In May, the both nations had agreed to drop high import duties on each other’s products, which had led to concerns of trade halting between the two nations.

This left, US tariffs on Chinese goods subject to an extra import tax compared with the start of the year, while US goods entering China are subject to a import levy.

China’s latest remarks – released by the Ministry of Commerce in the form of formal replies to press queries – echoed language from the peak of the recent trade conflict.

The remarks condemned United States controls on chips and semi-conductors while supporting Beijing’s overseas sale regulations on key elements as “routine measures” to safeguard domestic safety and that of the global community.

The official said that for “a long time”, the America had “overstretched the concept of state security, misused foreign shipment regulations and “enforced” discriminatory practices against the Chinese nation.

“Turning to” trade levy ultimatums is not the right way to deal with China,” the spokesperson said.

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

Last week, China declared it was strengthening foreign shipment restrictions on rare earth minerals and other materials critical for advanced tech manufacturing.

This was seen as a significant step, as the country handles about 90% of the global rare earth supply, which are used in items such as renewable energy components and handheld devices.

Latest statements from Washington and Beijing are being viewed by some as a method of enhancing bargaining power prior to future trade talks.

It is unclear whether a meeting between Donald Trump and China’s leader, expected at a conference in Seoul before month’s end, will still proceed.