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Trump’s latest ultimatum to introduce an extra full import duty on products from China has been described as a “classic case” of American hypocrisy, according to the China’s leadership.

A official from China’s Commerce Ministry also stated that China could implement its own unspecified “retaliatory steps” if the American leader carries out his warning, adding that the country was “fearless” of a potential trade conflict.

On Friday, the former president responded at Beijing’s move to tighten its regulations for overseas sales of critical elements, accusing Beijing of “becoming very hostile” and attempting to hold the international market “captive”.

He also vowed to cancel a arranged meeting with China’s President Xi, which was expected to take place during a summit in Seoul later this month.

His statements on Friday rattled stock exchanges, with the S&P 500 share index closing down 2.7%, marking its biggest drop since earlier this year.

His comments revived fears of a trade war between the United States and China.

In May, the two sides had consented to eliminate high import duties on each other’s imports, which had raised the prospect of trade halting between the two countries.

This left, United States levies on Chinese goods facing an added 30% levy compared with the beginning of 2025, while American products entering the Chinese market incur a 10% tariff.

Beijing’s recent statements – issued by the relevant government department in the form of formal replies to press queries – reflected language from the height of the latest commercial tensions.

The remarks condemned US export restrictions on chips and semi-conductors while supporting China’s own export controls on rare earths as “standard procedures” to safeguard national security and that of the global community.

Their representative said that for “many years”, the US had “broadened the definition” of national security, exploited foreign shipment regulations and “enforced” unfair treatments against the Chinese nation.

“Using” tariff threats is not the correct approach to deal with China,” their representative commented.

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

Last week, Beijing announced it was reinforcing foreign shipment restrictions on rare earths and other materials critical for high-technology production.

This move was regarded as a key move, as the country refines about 90% of the world’s rare earths, which are utilized in items such as renewable energy components and handheld devices.

New remarks from both governments are being viewed by observers as a means of enhancing bargaining power prior to forthcoming discussions.

Is not yet known whether a meeting between Trump and Xi Jinping, scheduled at a conference in Seoul before month’s end, will go ahead.