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Trump’s newest warning to introduce an extra complete levy on items imported from China has been labeled a “prime illustration” of United States’ contradictory behavior, as stated by the Beijing administration.

A official from China’s Commerce Ministry additionally remarked that China could enact its own unspecified “retaliatory steps” if the White House occupant executes his warning, emphasizing that the country was “unafraid” of a possible trade war.

On Friday, Donald Trump responded at Beijing’s move to tighten its rules for overseas sales of rare earths, alleging Beijing of “adopting a confrontational stance” and attempting to hold the global community “under its control”.

Additionally, he vowed to withdraw from a scheduled summit with Beijing’s head of state Xi, which was arranged for a summit in South Korea before the month ends.

Trump’s comments on Friday unsettled financial markets, with the benchmark US stock index dropping nearly three percent, marking its biggest drop since April.

The president’s words reignited fears of a trade conflict between the United States and China.

Earlier this year, the both nations had consented to drop triple-digit tariffs on each other’s imports, which had led to concerns of bilateral trade stopping between the two countries.

As a result, American import duties on products from China incurring an additional 30% levy compared with the start of the year, while American products entering the country are subject to a import levy.

The most recent comments from China – published by the Ministry of Commerce in the manner of official answers to press queries – mirrored terminology from the peak of the ongoing trade dispute.

They criticised US export restrictions on semiconductors and chips while justifying the country’s own overseas sale regulations on rare earths as “routine measures” to ensure state interests and that of all nations.

The spokesperson stated that for “many years”, the United States had “broadened the definition” of national security, misused export control measures and “implemented” biased policies against the Chinese nation.

“Resorting to tariff threats is not the right way to interact with the Chinese government,” their representative stated.

“Beijing’s stance” on a tariff war has remained steady: we do not want one, but we are fearless of one.”

Recently, the Chinese government announced it was tightening overseas sale regulations on rare earths and further resources essential to high-technology production.

The action was viewed as a significant step, as the country processes about 90% of the world’s rare earths, which are utilized in products such as renewable energy components and handheld devices.

Latest statements from both governments are being interpreted by observers as a method of enhancing bargaining power in preparation for forthcoming discussions.

Is not yet known whether a talks between Donald Trump and Xi Jinping, scheduled at a summit in the Republic of Korea later this month, will go ahead.