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Trump’s newest ultimatum to enforce an further 100% tariff on products from China has been described as a “typical example” of American hypocrisy, according to the China’s leadership.

A official from China’s Commerce Ministry also stated that China could implement its own unspecified “retaliatory steps” if the US President executes his pledge, adding that the country was “not afraid” of a possible commercial battle.

Last Friday, Trump retaliated at China’s decision to tighten its rules for exports of critical elements, accusing China of “becoming very hostile” and attempting to hold the global community “captive”.

Additionally, he warned to cancel a scheduled meeting with China’s President Xi Jinping, which was set for a summit in Seoul in the coming weeks.

Trump’s comments on Friday unsettled financial markets, with the S&P 500 dropping over two and a half percent, marking its biggest drop since April.

These statements revived fears of a trade war between the US and China.

Earlier this year, the two sides had consented to remove significant levies on each other’s imports, which had created the possibility of bilateral trade stopping between the two nations.

Consequently, US tariffs on Chinese goods facing an extra 30% levy compared with the start of the year, while American products entering the country face a 10% tariff.

The most recent comments from China – published by the relevant government department in the format of written responses to media inquiries – mirrored language from the peak of the ongoing trade dispute.

They criticised United States controls on chips and semi-conductors while defending the country’s own overseas sale regulations on key elements as “normal actions” to ensure domestic safety and that of the global community.

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

“Using” import duty warnings is not the proper method to engage with Beijing,” the spokesperson commented.

“China’s position on a trade conflict has remained steady: we do not want one, but we are fearless of one.”

Last week, the Chinese government revealed it was reinforcing export controls on rare earths and further resources essential to high-technology production.

The action was viewed as a important measure, as the nation handles about the vast majority of the planet’s critical minerals, which are used in products such as solar panels and handheld devices.

The recent comments from Washington and Beijing are being viewed by analysts as a method of bolstering negotiating stances in preparation for forthcoming discussions.

Remains uncertain whether a meeting between Trump and President Xi, scheduled at a conference in the Republic of Korea before month’s end, will go ahead.