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Trump’s newest warning to enforce an further 100% tariff on items imported from China has been labeled a “classic case” of American hypocrisy, as stated by the Chinese government.

A Commerce Ministry spokesperson further commented that Beijing could introduce its own unrevealed “retaliatory steps” if the White House occupant carries out his warning, adding that the country was “unafraid” of a potential commercial battle.

This past Friday, Trump retaliated at Beijing’s move to reinforce its regulations for foreign shipments of rare earths, alleging China of “becoming very hostile” and attempting to hold the international market “captive”.

Additionally, he vowed to cancel a scheduled meeting with Beijing’s head of state Xi Jinping, which was arranged for a summit in Seoul before the month ends.

His statements on last Friday shook global markets, with the S&P 500 share index dropping over two and a half percent, marking its biggest drop since April.

These statements revived concerns of a trade war between the United States and China.

In May, the respective governments had reached an agreement to eliminate high import duties on each other’s goods, which had created the possibility of commerce ceasing between the economic powers.

This left, American import duties on products from China incurring an extra 30% levy compared with the beginning of 2025, while items from the United States entering the country face a ten percent duty.

The most recent comments from China – published by the relevant government department in the format of official answers to media inquiries – mirrored terminology from the peak of the latest commercial tensions.

They criticised US export restrictions on semiconductors and chips while supporting China’s own restrictions on exports on rare earths as “routine measures” to protect national security and that of every country.

Their representative said that for “an extended period”, the United States had “broadened the definition” of state security, misused overseas sale restrictions and “implemented” discriminatory practices against the Chinese nation.

“Using” tariff threats is not the proper method to deal with the Chinese government,” their representative said.

“The nation’s view” on a import duty dispute has consistently been steady: we are not seeking one, but we are not afraid of one.”

The previous week, China declared it was strengthening foreign shipment restrictions on rare earth minerals and further resources vital for advanced tech manufacturing.

This was seen as a significant step, as the state handles about ninety percent of the global rare earth supply, which are used in products such as solar panels and mobile phones.

The recent comments from Washington and Beijing are being seen by observers as a strategy of bolstering negotiating stances ahead of future trade talks.

It is unclear whether a meeting between Trump and President Xi, scheduled at a high-level meeting in South Korea in the coming weeks, will take place as planned.