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The former US president’s latest ultimatum to introduce an further full import duty on items imported from China has been called a “classic case” of American hypocrisy, according to the Beijing administration.

A official from China’s Commerce Ministry additionally remarked that Beijing could implement its own undisclosed “countermeasures” if the American leader follows through on his warning, adding that the country was “not afraid” of a potential trade war.

On Friday, Trump responded at the Chinese government’s action to strengthen its policies for exports of rare earths, accusing China of “becoming very hostile” and attempting to hold the world “captive”.

Furthermore, he warned to withdraw from a planned talks with Beijing’s head of state Xi, which was set for a meeting in the Republic of Korea in the coming weeks.

The former president’s remarks on Friday unsettled financial markets, with the S&P 500 closing down 2.7%, marking its biggest drop since earlier this year.

The president’s words renewed fears of a trade war between the two economic giants.

In May, the two sides had reached an agreement to remove triple-digit tariffs on each other’s goods, which had created the possibility of trade halting between the two nations.

As a result, United States levies on Chinese goods facing an added import tax compared with the beginning of 2025, while items from the United States entering China are subject to a import levy.

The most recent comments from China – issued by the relevant government department in the form of formal replies to media inquiries – echoed rhetoric from the peak of the latest commercial tensions.

The remarks condemned United States controls on chips and semi-conductors while supporting the country’s own overseas sale regulations on key elements as “normal actions” to ensure domestic safety and that of every country.

Their representative stated that for “an extended period”, the United States had “expanded the interpretation” of domestic safety, misused overseas sale restrictions and “adopted unfair treatments against China.

“Resorting to import duty warnings is not the right way to engage with China,” the official commented.

“China’s position on a import duty dispute has always been unchanging: we do not want one, but we are fearless of one.”

Recently, Beijing revealed it was reinforcing overseas sale regulations on rare earth minerals and other materials essential to advanced tech manufacturing.

The action was viewed as a key move, as the state handles about the vast majority of the world’s rare earths, which are utilized in items such as photovoltaic modules and mobile phones.

The recent comments from the US and China are being interpreted by analysts as a means of enhancing bargaining power in preparation for future trade talks.

Is not yet known whether a talks between Trump and President Xi, scheduled at a high-level meeting in Seoul later this month, will go ahead.