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Trump’s most recent threat to introduce an extra complete levy on Chinese goods has been labeled a “typical example” of American hypocrisy, according to the Beijing administration.

A official from China’s Commerce Ministry further commented that China could implement its own unrevealed “retaliatory steps” if the US President carries out his pledge, adding that the country was “unafraid” of a looming commercial battle.

On Friday, Donald Trump retaliated at Beijing’s move to tighten its policies for overseas sales of rare earth minerals, alleging China of “turning aggressive” and attempting to hold the global community “hostage”.

Furthermore, he warned to cancel a arranged talks with China’s President President Xi, which was arranged for a meeting in South Korea before the month ends.

Trump’s comments on Friday shook stock exchanges, with the S&P 500 share index closing down over two and a half percent, marking its largest decline since last spring.

These statements reignited concerns of a commercial dispute between the United States and China.

This past spring, the two sides had agreed to remove high import duties on each other’s goods, which had raised the prospect of bilateral trade stopping between the two countries.

This left, American import duties on Chinese goods incurring an added 30% levy compared with the beginning of 2025, while American products entering China face a import levy.

China’s latest remarks – released by the Commerce Ministry in the manner of written responses to media inquiries – mirrored rhetoric from the zenith of the recent trade conflict.

They criticised United States controls on chips and semi-conductors while defending Beijing’s overseas sale regulations on key elements as “routine measures” to safeguard national security and that of every country.

The official stated that for “an extended period”, the US had “expanded the interpretation” of domestic safety, misused export control measures and “implemented” unfair treatments against Beijing.

“Turning to” trade levy ultimatums is not the proper method to interact with Beijing,” their representative commented.

“Beijing’s stance” on a trade conflict has always been consistent: we wish to avoid one, but we are unafraid of one.”

The previous week, China revealed it was strengthening export controls on rare earth minerals and further resources critical for advanced tech manufacturing.

This was seen as a important measure, as the nation processes about 90% of the planet’s critical minerals, which are utilized in products such as solar panels and smartphones.

The recent comments from the US and China are being seen by analysts as a strategy of enhancing bargaining power ahead of forthcoming discussions.

It is unclear whether a meeting between the former president and President Xi, scheduled at a high-level meeting in the Republic of Korea later this month, will take place as planned.