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Trump’s most recent ultimatum to enforce an further 100% tariff on Chinese goods has been described as a “typical example” of United States’ contradictory behavior, as stated by the Chinese government.

A official from China’s Commerce Ministry also stated that Beijing could enact its own unspecified “responsive actions” if the White House occupant follows through on his warning, emphasizing that the country was “fearless” of a potential commercial battle.

On Friday, the former president hit back at China’s decision to strengthen its rules for exports of rare earth minerals, accusing Beijing of “adopting a confrontational stance” and attempting to hold the world “hostage”.

Additionally, he warned to pull out of a scheduled meeting with Chinese leader President Xi, which was arranged for a meeting in Seoul later this month.

His statements on Friday rattled financial markets, with the S&P 500 closing down over two and a half percent, marking its biggest drop since earlier this year.

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

Earlier this year, the respective governments had consented to eliminate triple-digit tariffs on each other’s imports, which had raised the prospect of trade halting between the two countries.

As a result, US tariffs on Chinese goods incurring an additional thirty percent tariff compared with the beginning of 2025, while American products entering the Chinese market are subject to a 10% tariff.

China’s latest remarks – released by the relevant government department in the format of written responses to journalist’s questions – reflected terminology from the height of the ongoing trade dispute.

They criticised US export restrictions on semiconductors and chips while supporting the country’s own restrictions on exports on rare earths as “normal actions” to safeguard domestic safety and that of all nations.

The official said that for “many years”, the United States had “broadened the definition” of domestic safety, exploited overseas sale restrictions and “adopted biased policies against the Chinese nation.

“Turning to” trade levy ultimatums is not the correct approach to interact with Beijing,” their representative said.

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

Last week, Beijing revealed it was strengthening overseas sale regulations on rare earth minerals and other materials vital for cutting-edge industry.

This move was regarded as a significant step, as the country processes about ninety percent of the global rare earth supply, which are employed in items such as solar panels and handheld devices.

The recent comments from both governments are being seen by observers as a means of enhancing bargaining power ahead of forthcoming discussions.

Remains uncertain whether a meeting between Donald Trump and Xi Jinping, planned at a high-level meeting in Seoul in the coming weeks, will still proceed.