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Donald Trump’s newest threat to impose an further 100% tariff on Chinese goods has been labeled a “prime illustration” of American hypocrisy, as stated by the Chinese government.

A official from China’s Commerce Ministry also stated that the nation could enact its own unrevealed “responsive actions” if the US President follows through on his warning, adding that the country was “not afraid” of a looming commercial battle.

On Friday, the former president responded at the Chinese government’s action to tighten its rules for overseas sales of rare earth minerals, alleging China of “turning aggressive” and attempting to hold the international market “hostage”.

He also vowed to withdraw from a arranged talks with China’s President Xi, which was arranged for a summit in the Republic of Korea later this month.

The former president’s remarks on that day rattled global markets, with the S&P 500 share index falling by nearly three percent, marking its largest decline since earlier this year.

The president’s words revived apprehensions of a trade conflict between the two economic giants.

This past spring, the respective governments had reached an agreement to drop high import duties on each other’s imports, which had created the possibility of trade halting between the two countries.

Consequently, American import duties on Chinese goods facing an extra import tax compared with the start of the year, while US goods entering China face a import levy.

China’s latest remarks – released by the Ministry of Commerce in the format of written responses to journalist’s questions – reflected rhetoric from the zenith of the recent trade conflict.

The remarks condemned United States controls on chips and semi-conductors while defending Beijing’s overseas sale regulations on key elements as “routine measures” to ensure domestic safety and that of every country.

The spokesperson stated that for “a long time”, the US had “overstretched the concept of domestic safety, misused export control measures and “implemented” unfair treatments against China.

“Using” tariff threats is not the proper method to interact with Beijing,” their representative said.

“China’s position on a tariff war has always been consistent: we wish to avoid one, but we are fearless of one.”

The previous week, Beijing revealed it was strengthening export controls on rare earth minerals and further resources essential to advanced tech manufacturing.

The action was viewed as a important measure, as the country refines about 90% of the global rare earth supply, which are employed in items such as photovoltaic modules and handheld devices.

The recent comments from the US and China are being seen by analysts as a means of bolstering negotiating stances in preparation for forthcoming discussions.

Remains uncertain whether a summit between Donald Trump and China’s leader, scheduled at a conference in the Republic of Korea later this month, will go ahead.