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Trump’s newest ultimatum to impose an additional full import duty on items imported from China has been called a “typical example” of United States’ contradictory behavior, according to the China’s leadership.

A official from China’s Commerce Ministry also stated that China could enact its own unrevealed “retaliatory steps” if the American leader follows through on his pledge, adding that the country was “not afraid” of a looming commercial battle.

Last Friday, the former president retaliated at the Chinese government’s action to tighten its regulations for exports of rare earths, alleging Beijing of “adopting a confrontational stance” and attempting to hold the international market “under its control”.

Furthermore, he warned to pull out of a planned talks with Chinese leader Xi Jinping, which was expected to take place during a summit in Seoul later this month.

The former president’s remarks on last Friday shook financial markets, with the benchmark US stock index dropping over two and a half percent, marking its biggest drop since last spring.

The president’s words renewed concerns of a commercial dispute between the US and China.

Earlier this year, the respective governments had agreed to drop high import duties on each other’s products, which had raised the prospect of trade halting between the two nations.

Consequently, United States levies on Chinese imports incurring an additional thirty percent tariff compared with the beginning of 2025, while American products entering China face a ten percent duty.

China’s latest remarks – released by the Commerce Ministry in the format of formal replies to media inquiries – reflected rhetoric from the zenith of the recent trade conflict.

The remarks condemned American limits on exports on electronic components while supporting China’s own overseas sale regulations on rare earth minerals as “normal actions” to safeguard state interests and that of all nations.

Their representative stated that for “many years”, the United States had “broadened the definition” of domestic safety, exploited export control measures and “enforced” discriminatory practices against Beijing.

“Using” trade levy ultimatums is not the proper method to deal with China,” the official commented.

“China’s position on a tariff war has remained consistent: we are not seeking one, but we are not afraid of one.”

Recently, Beijing announced it was tightening foreign shipment restrictions on key elements and further resources vital for cutting-edge industry.

The action was viewed as a significant step, as the nation handles about 90% of the world’s rare earths, which are used in goods such as renewable energy components and handheld devices.

Latest statements from both governments are being viewed by observers as a method of strengthening positions in preparation for future trade talks.

It is unclear whether a meeting between Donald Trump and China’s leader, expected at a high-level meeting in the Republic of Korea before month’s end, will still proceed.