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Trump’s most recent warning to impose an extra 100% tariff on Chinese goods has been labeled a “prime illustration” of US double standards, as stated by the Chinese government.

A Commerce Ministry spokesperson also stated that China could enact its own unspecified “retaliatory steps” if the US President executes his warning, adding that the country was “fearless” of a looming trade conflict.

Last Friday, Trump hit back at the Chinese government’s action to reinforce its regulations for exports of rare earths, alleging Beijing of “becoming very hostile” and attempting to hold the international market “under its control”.

Additionally, he vowed to pull out of a arranged summit with Beijing’s head of state President Xi, which was expected to take place during a summit in Seoul later this month.

The former president’s remarks on Friday shook financial markets, with the S&P 500 share index falling by over two and a half percent, marking its biggest drop since April.

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

In May, the both nations had consented to eliminate significant levies on each other’s products, which had created the possibility of commerce ceasing between the economic powers.

Consequently, United States levies on products from China facing an extra 30% levy compared with the start of the year, while American products entering the Chinese market incur a import levy.

China’s latest remarks – published by the relevant government department in the manner of formal replies to press queries – mirrored language from the peak of the ongoing trade dispute.

They criticised US export restrictions on chips and semi-conductors while supporting the country’s own restrictions on exports on rare earths as “standard procedures” to ensure domestic safety and that of the global community.

The spokesperson said that for “a long time”, the United States had “expanded the interpretation” of state security, abused overseas sale restrictions and “implemented” biased policies against Beijing.

“Using” tariff threats is not the correct approach to engage with Beijing,” the official stated.

“China’s position on a trade conflict has consistently been steady: we wish to avoid one, but we are unafraid of one.”

The previous week, Beijing declared it was strengthening export controls on key elements and other materials critical for advanced tech manufacturing.

This move was regarded as a key move, as the nation processes about 90% of the planet’s critical minerals, which are used in products such as renewable energy components and mobile phones.

New remarks from both governments are being seen by analysts as a strategy of enhancing bargaining power in preparation for future trade talks.

Is not yet known whether a meeting between Donald Trump and China’s leader, planned at a conference in South Korea later this month, will take place as planned.