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The former US president’s newest threat to impose an extra 100% tariff on items imported from China has been described as a “classic case” of United States’ contradictory behavior, according to the Chinese government.

A official from China’s Commerce Ministry also stated that China could implement its own undisclosed “retaliatory steps” if the American leader executes his threat, adding that the country was “not afraid” of a looming commercial battle.

Last Friday, the former president responded at the Chinese government’s action to strengthen its rules for overseas sales of critical elements, accusing China of “turning aggressive” and attempting to hold the world “hostage”.

Furthermore, he vowed to withdraw from a scheduled talks with China’s President Xi, which was expected to take place during a summit in the Republic of Korea in the coming weeks.

His statements on Friday shook financial markets, with the S&P 500 closing down over two and a half percent, marking its largest decline since last spring.

The president’s words reignited concerns of a trade conflict between the United States and China.

Earlier this year, the both nations had reached an agreement to remove triple-digit tariffs on each other’s products, which had raised the prospect of commerce ceasing between the two countries.

This left, American import duties on products from China incurring an extra 30% levy compared with the beginning of 2025, while American products entering China incur a import levy.

Beijing’s recent statements – issued by the Commerce Ministry in the form of formal replies to press queries – reflected terminology from the zenith of the latest commercial tensions.

The remarks condemned US export restrictions on semiconductors and chips while justifying the country’s own restrictions on exports on rare earth minerals as “standard procedures” to ensure domestic safety and that of the global community.

The official said that for “an extended period”, the America had “overstretched the concept of state security, misused foreign shipment regulations and “adopted biased policies against Beijing.

“Resorting to import duty warnings is not the proper method to interact with Beijing,” the spokesperson stated.

“Beijing’s stance” on a import duty dispute has remained unchanging: we do not want one, but we are unafraid of one.”

Last week, China announced it was tightening export controls on key elements and other materials essential to cutting-edge industry.

This was seen as a significant step, as the country refines about ninety percent of the global rare earth supply, which are utilized in products such as renewable energy components and smartphones.

The recent comments from the US and China are being interpreted by analysts as a strategy of bolstering negotiating stances prior to future trade talks.

It is unclear whether a talks between Donald Trump and President Xi, scheduled at a high-level meeting in Seoul before month’s end, will still proceed.