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Donald Trump’s most recent threat to enforce an extra complete levy on Chinese goods 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 enact its own unspecified “retaliatory steps” if the American leader follows through on his threat, adding that the country was “not afraid” of a possible trade war.

On Friday, Donald Trump retaliated at the Chinese government’s action to strengthen its regulations for foreign shipments of rare earth minerals, alleging the Chinese leadership of “turning aggressive” and attempting to hold the international market “hostage”.

He also vowed to cancel a arranged summit with Chinese leader President Xi, which was set for a conference in Seoul later this month.

His statements on last Friday rattled financial markets, with the S&P 500 share index dropping 2.7%, marking its biggest drop since earlier this year.

The president’s words reignited apprehensions of a trade war between the two economic giants.

This past spring, the respective governments had reached an agreement to eliminate triple-digit tariffs on each other’s products, which had created the possibility of bilateral trade stopping between the two countries.

As a result, American import duties on Chinese goods subject to an additional 30% levy compared with the start of the year, while items from the United States entering China are subject to a import levy.

Beijing’s recent statements – issued by the relevant government department in the form of written responses to journalist’s questions – reflected language from the zenith of the ongoing trade dispute.

They criticised United States controls on chips and semi-conductors while justifying China’s own overseas sale regulations on rare earth minerals as “routine measures” to safeguard national security and that of every country.

Their representative remarked that for “many years”, the America had “broadened the definition” of state security, exploited foreign shipment regulations and “enforced” unfair treatments against China.

“Turning to” import duty warnings is not the right way to interact with Beijing,” their representative commented.

“Beijing’s stance” on a trade conflict has remained unchanging: we are not seeking one, but we are not afraid of one.”

The previous week, Beijing declared it was tightening overseas sale regulations on rare earth minerals and additional substances critical for cutting-edge industry.

This move was regarded as a significant step, as the state refines about the vast majority of the planet’s critical minerals, which are used in goods such as solar panels and smartphones.

Latest statements from both governments are being viewed by analysts as a strategy of bolstering negotiating stances prior to forthcoming discussions.

Remains uncertain whether a summit between Trump and President Xi, expected at a high-level meeting in South Korea before month’s end, will take place as planned.