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Donald Trump’s most recent threat to impose an further full import duty on products from China has been described as a “prime illustration” of American hypocrisy, as stated by the Beijing administration.

A official from China’s Commerce Ministry also stated that Beijing could implement its own unspecified “retaliatory steps” if the US President follows through on his threat, emphasizing that the country was “not afraid” of a possible trade war.

On Friday, Trump responded at the Chinese government’s action to tighten its regulations for overseas sales of rare earths, charging Beijing of “turning aggressive” and attempting to hold the international market “hostage”.

He also vowed to pull out of a planned talks with Chinese leader Xi Jinping, which was expected to take place during a summit in Seoul before the month ends.

His statements on Friday rattled stock exchanges, with the S&P 500 share index closing down 2.7%, marking its biggest drop since earlier this year.

These statements renewed fears of a commercial dispute between the US and China.

This past spring, the two sides had agreed to eliminate significant levies on each other’s imports, which had raised the prospect of commerce ceasing between the two countries.

Consequently, US tariffs on products from China incurring an added import tax compared with the start of the year, while items from the United States entering China incur a import levy.

The most recent comments from China – released by the Ministry of Commerce in the format of formal replies to press queries – mirrored language from the height of the recent trade conflict.

They criticised US export restrictions on semiconductors and chips while defending Beijing’s restrictions on exports on rare earth minerals as “standard procedures” to safeguard domestic safety and that of every country.

Their representative said that for “an extended period”, the US had “overstretched the concept of state security, exploited export control measures and “adopted unfair treatments against the Chinese nation.

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

“China’s position on a trade conflict has consistently been unchanging: we do not want one, but we are unafraid of one.”

Recently, China declared it was strengthening export controls on key elements and further resources vital for high-technology production.

The action was viewed as a key move, as the state handles about the vast majority of the global rare earth supply, which are used in goods such as photovoltaic modules and handheld devices.

Latest statements from Washington and Beijing are being seen by some as a means of bolstering negotiating stances in preparation for future trade talks.

Is not yet known whether a summit between Donald Trump and China’s leader, planned at a summit in the Republic of Korea before month’s end, will take place as planned.