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The former US president’s latest warning to introduce an further complete levy on items imported from China has been labeled a “classic case” of United States’ contradictory behavior, according to the Chinese government.

A official from China’s Commerce Ministry further commented that Beijing could introduce its own undisclosed “retaliatory steps” if the American leader carries out his warning, noting that the country was “unafraid” of a looming trade conflict.

This past Friday, Donald Trump responded at the Chinese government’s action to reinforce its rules for exports of rare earth minerals, accusing China of “turning aggressive” and attempting to hold the international market “captive”.

Furthermore, he warned to withdraw from a planned summit with China’s President President Xi, which was expected to take place during a summit in South Korea in the coming weeks.

Trump’s comments on Friday shook stock exchanges, with the S&P 500 share index falling by 2.7%, marking its biggest drop since last spring.

The president’s words renewed concerns of a trade war between the US and China.

In May, the two sides had reached an agreement to eliminate significant levies on each other’s imports, which had led to concerns of trade halting between the two countries.

This left, US tariffs on products from China facing an additional import tax compared with the year’s onset, while items from the United States entering the Chinese market are subject to a import levy.

The most recent comments from China – released by the relevant government department in the form of formal replies to press queries – mirrored rhetoric from the zenith of the ongoing trade dispute.

The remarks condemned US export restrictions on chips and semi-conductors while supporting the country’s own restrictions on exports on rare earths as “standard procedures” to protect domestic safety and that of all nations.

The official remarked that for “many years”, the America had “overstretched the concept of domestic safety, misused overseas sale restrictions and “adopted unfair treatments against Beijing.

“Using” trade levy ultimatums is not the right way to engage with China,” the official said.

“Beijing’s stance” on a tariff war has remained consistent: we are not seeking one, but we are fearless of one.”

Recently, China announced it was reinforcing foreign shipment restrictions on key elements and other materials critical for advanced tech manufacturing.

This move was regarded as a important measure, as the country processes about the vast majority of the planet’s critical minerals, which are utilized in goods such as renewable energy components and smartphones.

Latest statements from the US and China are being viewed by observers as a method of enhancing bargaining power prior to upcoming negotiations.

Remains uncertain whether a summit between Donald Trump and President Xi, planned at a conference in the Republic of Korea later this month, will still proceed.