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Donald Trump’s latest threat to introduce an additional 100% tariff on Chinese goods has been called a “classic case” of American hypocrisy, according to the Chinese government.

A Commerce Ministry spokesperson also stated that China could enact its own undisclosed “retaliatory steps” if the American leader executes his pledge, adding that the country was “unafraid” of a looming commercial battle.

Last Friday, Trump hit back at the Chinese government’s action to strengthen its policies for overseas sales of rare earths, alleging the Chinese leadership of “adopting a confrontational stance” and attempting to hold the world “under its control”.

He also threatened to pull out of a arranged meeting with China’s President Xi, which was arranged for a summit in Seoul before the month ends.

The former president’s remarks on Friday rattled stock exchanges, with the S&P 500 dropping over two and a half percent, marking its largest decline since last spring.

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

This past spring, the two sides had consented to drop significant levies on each other’s goods, which had led to concerns of trade halting between the economic powers.

Consequently, United States levies on Chinese goods incurring an extra import tax compared with the beginning of 2025, while US goods entering the country face a ten percent duty.

The most recent comments from China – published by the Ministry of Commerce in the manner of formal replies to press queries – reflected terminology from the zenith of the latest commercial tensions.

Officials denounced US export restrictions on chips and semi-conductors while supporting Beijing’s export controls on key elements as “routine measures” to protect national security and that of every country.

The official remarked that for “an extended period”, the United States had “broadened the definition” of national security, abused export control measures and “implemented” unfair treatments against the Chinese nation.

“Resorting to import duty warnings is not the right way to interact with China,” the spokesperson stated.

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

Last week, the Chinese government announced it was reinforcing foreign shipment restrictions on rare earths and further resources essential to cutting-edge industry.

This was seen as a significant step, as the nation refines about 90% of the global rare earth supply, which are employed in goods such as solar panels and mobile phones.

New remarks from the US and China are being viewed by some as a means of enhancing bargaining power prior to future trade talks.

Is not yet known whether a talks between Donald Trump and President Xi, expected at a conference in South Korea later this month, will go ahead.