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Trump’s newest threat to enforce an further complete levy on products from China has been described as a “prime illustration” of United States’ contradictory behavior, according to the China’s leadership.

A Commerce Ministry spokesperson further commented that the nation could introduce its own undisclosed “retaliatory steps” if the US President executes his warning, noting that the country was “not afraid” of a potential trade war.

On Friday, Trump hit back at Beijing’s move to strengthen its policies for foreign shipments of rare earth minerals, charging China of “becoming very hostile” and attempting to hold the global community “hostage”.

Additionally, he threatened to pull out of a arranged meeting with China’s President President Xi, which was set for a meeting in Seoul before the month ends.

The former president’s remarks on Friday shook stock exchanges, with the S&P 500 share index dropping over two and a half percent, marking its steepest fall since April.

His comments revived concerns of a commercial dispute between the US and China.

This past spring, the two sides had reached an agreement to eliminate high import duties on each other’s imports, which had created the possibility of trade halting between the economic powers.

Consequently, US tariffs on Chinese goods incurring an additional import tax compared with the beginning of 2025, while items from the United States entering China face a 10% tariff.

China’s latest remarks – issued by the relevant government department in the form of official answers to media inquiries – mirrored rhetoric from the zenith of the latest commercial tensions.

Officials denounced United States controls on chips and semi-conductors while supporting Beijing’s export controls on rare earths as “routine measures” to safeguard national security and that of the global community.

The official stated that for “an extended period”, the US had “broadened the definition” of national security, abused overseas sale restrictions and “implemented” biased policies against China.

“Turning to” tariff threats is not the right way to engage with the Chinese government,” their representative said.

“Beijing’s stance” on a tariff war has always been steady: we are not seeking one, but we are unafraid of one.”

Last week, Beijing declared it was strengthening overseas sale regulations on rare earths and other materials essential to high-technology production.

The action was viewed as a key move, as the nation refines about the vast majority of the planet’s critical minerals, which are utilized in items such as renewable energy components and smartphones.

New remarks from Washington and Beijing are being interpreted by analysts as a strategy of strengthening positions prior to upcoming negotiations.

Is not yet known whether a talks between Donald Trump and China’s leader, scheduled at a summit in the Republic of Korea later this month, will still proceed.