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Donald Trump’s latest threat to enforce an additional full import duty on products from China has been labeled a “prime illustration” of American hypocrisy, according to the China’s leadership.

A official from China’s Commerce Ministry also stated that Beijing could implement its own undisclosed “retaliatory steps” if the US President carries out his pledge, emphasizing that the country was “fearless” of a potential commercial battle.

On Friday, the former president responded at Beijing’s move to reinforce its policies for overseas sales of rare earth minerals, alleging Beijing of “adopting a confrontational stance” and attempting to hold the world “captive”.

He also warned to pull out of a scheduled meeting with China’s President Xi, which was arranged for a summit in South Korea in the coming weeks.

The former president’s remarks on that day shook stock exchanges, with the S&P 500 share index closing down 2.7%, marking its biggest drop since earlier this year.

The president’s words reignited fears of a trade conflict between the two economic giants.

In May, the both nations had reached an agreement to eliminate significant levies on each other’s imports, which had created the possibility of commerce ceasing between the two nations.

This left, American import duties on products from China facing an added import tax compared with the start of the year, while items from the United States entering the Chinese market are subject to a ten percent duty.

Beijing’s recent statements – published by the relevant government department in the format of formal replies to journalist’s questions – mirrored language from the zenith of the latest commercial tensions.

They criticised US export restrictions on semiconductors and chips while defending China’s own export controls on rare earth minerals as “routine measures” to protect national security and that of the global community.

The spokesperson remarked that for “a long time”, the United States had “overstretched the concept of state security, abused foreign shipment regulations and “enforced” unfair treatments against the Chinese nation.

“Resorting to trade levy ultimatums is not the correct approach to interact with Beijing,” the spokesperson commented.

“The nation’s view” on a import duty dispute has consistently been unchanging: we do not want one, but we are fearless of one.”

Last week, Beijing revealed it was reinforcing export controls on key elements and additional substances vital for cutting-edge industry.

This move was regarded as a key move, as the nation refines about the vast majority of the global rare earth supply, which are used in goods such as solar panels and smartphones.

New remarks from Washington and Beijing are being viewed by observers as a strategy of bolstering negotiating stances ahead of forthcoming discussions.

Is not yet known whether a talks between the former president and President Xi, scheduled at a high-level meeting in Seoul later this month, will go ahead.