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The former US president’s newest threat to enforce an extra full import duty on items imported from China has been called a “prime illustration” of United States’ contradictory behavior, according to the Beijing administration.

A official from China’s Commerce Ministry additionally remarked that China could implement its own unspecified “retaliatory steps” if the US President follows through on his pledge, adding that the country was “unafraid” of a potential trade conflict.

Last Friday, Trump hit back at the Chinese government’s action to strengthen its regulations for overseas sales of rare earths, alleging Beijing of “adopting a confrontational stance” and attempting to hold the international market “under its control”.

Additionally, he threatened to pull out of a scheduled meeting with Beijing’s head of state President Xi, which was arranged for a conference in South Korea before the month ends.

The former president’s remarks on last Friday shook global markets, with the benchmark US stock index falling by 2.7%, marking its largest decline since April.

These statements renewed apprehensions of a commercial dispute between the two economic giants.

Earlier this year, the respective governments had consented to remove significant levies on each other’s goods, which had raised the prospect of trade halting between the two nations.

As a result, United States levies on Chinese goods facing an added 30% levy compared with the year’s onset, while American products entering the Chinese market are subject to a import levy.

The most recent comments from China – released by the relevant government department in the manner of official answers to press queries – mirrored terminology from the zenith of the latest commercial tensions.

Officials denounced American limits on exports on electronic components while justifying Beijing’s export controls on rare earths as “routine measures” to protect domestic safety and that of every country.

The spokesperson remarked that for “many years”, the America had “overstretched the concept of domestic safety, misused export control measures and “implemented” unfair treatments against the Chinese nation.

“Turning to” trade levy ultimatums is not the right way to interact with the Chinese government,” the official said.

“The nation’s view” on a trade conflict has always been consistent: we do not want one, but we are fearless of one.”

The previous week, Beijing announced it was reinforcing foreign shipment restrictions on rare earth minerals and additional substances essential to cutting-edge industry.

The action was viewed as a important measure, as the state handles about 90% of the world’s rare earths, which are utilized in products such as renewable energy components and mobile phones.

Latest statements from Washington and Beijing are being seen by some as a strategy of strengthening positions in preparation for future trade talks.

It is unclear whether a summit between Trump and President Xi, expected at a summit in the Republic of Korea in the coming weeks, will take place as planned.