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Donald Trump’s newest ultimatum to impose an extra full import duty on products from China has been called a “classic case” of United States’ contradictory behavior, according to the Beijing administration.

A Commerce Ministry spokesperson also stated that China could introduce its own undisclosed “retaliatory steps” if the US President executes his warning, noting that the country was “not afraid” of a potential commercial battle.

On Friday, the former president retaliated at the Chinese government’s action to reinforce its regulations for overseas sales of rare earth minerals, alleging China of “turning aggressive” and attempting to hold the international market “captive”.

Additionally, he warned to cancel a arranged meeting with Beijing’s head of state President Xi, which was expected to take place during a conference in the Republic of Korea later this month.

Trump’s comments on Friday rattled global markets, with the benchmark US stock index falling by over two and a half percent, marking its largest decline since April.

These statements renewed fears of a trade conflict between the United States and China.

Earlier this year, the respective governments had agreed to remove triple-digit tariffs on each other’s goods, which had led to concerns of trade halting between the two nations.

This left, US tariffs on Chinese imports subject to an extra 30% levy compared with the start of the year, while items from the United States entering China face a ten percent duty.

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

The remarks condemned US export restrictions on electronic components while supporting Beijing’s overseas sale regulations on rare earths as “standard procedures” to ensure national security and that of all nations.

The spokesperson stated that for “a long time”, the United States had “broadened the definition” of state security, misused overseas sale restrictions and “adopted biased policies against Beijing.

“Turning to” tariff threats is not the right way to deal with Beijing,” the spokesperson commented.

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

Last week, Beijing declared it was tightening foreign shipment restrictions on rare earths and other materials vital for high-technology production.

This was seen as a significant step, as the country processes about 90% of the planet’s critical minerals, which are utilized in goods such as photovoltaic modules and mobile phones.

New remarks from the US and China are being interpreted by observers as a method of strengthening positions prior to forthcoming discussions.

Remains uncertain whether a talks between Donald Trump and President Xi, scheduled at a summit in Seoul in the coming weeks, will go ahead.