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Donald Trump’s latest warning to impose an extra complete levy on items imported from China has been labeled a “prime illustration” of American hypocrisy, per the Chinese government.

A representative of the ministry further commented that the nation could introduce its own undisclosed “responsive actions” if the US President follows through on his threat, noting that the country was “unafraid” of a potential commercial battle.

On Friday, the former president retaliated at Beijing’s move to strengthen its regulations for overseas sales of rare earth minerals, alleging China of “turning aggressive” and attempting to hold the global community “captive”.

Furthermore, he warned to cancel a planned meeting with Beijing’s head of state Xi, which was set for a summit in the Republic of Korea before the month ends.

Trump’s comments on that day unsettled stock exchanges, with the S&P 500 falling by over two and a half percent, marking its biggest drop since earlier this year.

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

In May, the respective governments had reached an agreement to eliminate triple-digit tariffs on each other’s goods, which had led to concerns of trade halting between the two countries.

This left, American import duties on Chinese goods facing an additional import tax compared with the beginning of 2025, while American products entering the Chinese market are subject to a import levy.

Beijing’s recent statements – released by the Ministry of Commerce in the form of official answers to media inquiries – reflected rhetoric from the height of the ongoing trade dispute.

They criticised American limits on exports on semiconductors and chips while supporting China’s own overseas sale regulations on rare earth minerals as “routine measures” to ensure state interests and that of the global community.

The official remarked that for “many years”, the United States had “overstretched the concept of domestic safety, exploited foreign shipment regulations and “implemented” biased policies against the Chinese nation.

“Resorting to trade levy ultimatums is not the proper method to deal with the Chinese government,” their representative said.

“Beijing’s stance” on a tariff war has consistently been steady: we wish to avoid one, but we are not afraid of one.”

Recently, Beijing revealed it was strengthening overseas sale regulations on rare earths and further resources essential to high-technology production.

This move was regarded as a key move, as the state handles about 90% of the planet’s critical minerals, which are utilized in goods such as solar panels and mobile phones.

Latest statements from both governments are being seen by analysts as a means of enhancing bargaining power prior to upcoming negotiations.

It is unclear whether a summit between Donald Trump and Xi Jinping, planned at a conference in South Korea later this month, will take place as planned.