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Donald Trump’s newest threat to impose an extra complete levy on Chinese goods has been called a “typical example” of American hypocrisy, as stated by the Chinese government.

A official from China’s Commerce Ministry further commented that the nation could enact its own unrevealed “retaliatory steps” if the US President executes his warning, emphasizing that the country was “unafraid” of a potential commercial battle.

This past Friday, Donald Trump hit back at China’s decision to tighten its regulations for exports of rare earth minerals, charging the Chinese leadership of “becoming very hostile” and attempting to hold the world “captive”.

Additionally, he vowed to withdraw from a scheduled summit with China’s President Xi Jinping, which was set for a meeting in Seoul later this month.

Trump’s comments on that day rattled financial markets, with the S&P 500 share index closing down nearly three percent, marking its largest decline since earlier this year.

The president’s words revived concerns of a trade war between the two economic giants.

Earlier this year, the respective governments had consented to remove high import duties on each other’s products, which had led to concerns of commerce ceasing between the two countries.

This left, American import duties on Chinese imports facing an additional import tax compared with the beginning of 2025, while US goods entering the country are subject to a ten percent duty.

The most recent comments from China – published by the relevant government department in the form of official answers to press queries – echoed rhetoric from the zenith of the latest commercial tensions.

Officials denounced US export restrictions on semiconductors and chips while justifying the country’s own overseas sale regulations on rare earths as “standard procedures” to ensure state interests and that of all nations.

The spokesperson remarked that for “an extended period”, the US had “broadened the definition” of domestic safety, exploited export control measures and “implemented” unfair treatments against the Chinese nation.

“Using” import duty warnings is not the right way to interact with the Chinese government,” the spokesperson said.

“China’s position on a trade conflict has always been steady: we wish to avoid one, but we are unafraid of one.”

The previous week, Beijing revealed it was tightening foreign shipment restrictions on rare earth minerals and further resources essential to advanced tech manufacturing.

The action was viewed as a important measure, as the state processes about the vast majority of the world’s rare earths, which are utilized in products such as solar panels and mobile phones.

Latest statements from both governments are being viewed by some as a method of enhancing bargaining power ahead of future trade talks.

It is unclear whether a summit between the former president and Xi Jinping, expected at a summit in Seoul before month’s end, will still proceed.