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Trump’s newest threat to introduce an additional full import duty on Chinese goods has been called a “prime illustration” of United States’ contradictory behavior, per the China’s leadership.

A Commerce Ministry spokesperson additionally remarked that China could implement its own undisclosed “retaliatory steps” if the US President executes his pledge, adding that the country was “not afraid” of a looming trade war.

Last Friday, Donald Trump hit back at the Chinese government’s action to strengthen its rules for overseas sales of rare earths, alleging China of “becoming very hostile” and attempting to hold the world “under its control”.

He also warned to cancel a arranged meeting with China’s President Xi Jinping, which was arranged for a meeting in Seoul later this month.

His statements on last Friday rattled financial markets, with the benchmark US stock index falling by nearly three percent, marking its biggest drop since April.

His comments renewed fears of a trade conflict between the two economic giants.

In May, the respective governments had reached an agreement to drop high import duties on each other’s imports, which had led to concerns of trade halting between the two countries.

Consequently, United States levies on Chinese goods facing an extra thirty percent tariff compared with the beginning of 2025, while American products entering the country incur a 10% tariff.

Beijing’s recent statements – issued by the Commerce Ministry in the manner of written responses to press queries – mirrored rhetoric from the height of the latest commercial tensions.

The remarks condemned American limits on exports on semiconductors and chips while defending the country’s own restrictions on exports on rare earth minerals as “standard procedures” to safeguard state interests and that of all nations.

Their representative stated that for “an extended period”, the US had “overstretched the concept of domestic safety, misused export control measures and “enforced” discriminatory practices against the Chinese nation.

“Turning to” import duty warnings is not the proper method to deal with China,” their representative said.

“China’s position on a tariff war has remained unchanging: we do not want one, but we are fearless of one.”

Last week, China announced it was strengthening overseas sale regulations on rare earth minerals and other materials critical for cutting-edge industry.

This move was regarded as a important measure, as the state refines about 90% of the world’s rare earths, which are employed in items such as photovoltaic modules and handheld devices.

The recent comments from Washington and Beijing are being interpreted by observers as a strategy of enhancing bargaining power in preparation for future trade talks.

Remains uncertain whether a summit between Donald Trump and President Xi, scheduled at a high-level meeting in South Korea before month’s end, will still proceed.