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Donald Trump’s latest threat to impose an further 100% tariff on items imported from China has been described as a “typical example” of American hypocrisy, according to the Beijing administration.

A representative of the ministry further commented that Beijing could introduce its own undisclosed “retaliatory steps” if the American leader carries out his threat, emphasizing that the country was “fearless” of a potential trade conflict.

Last Friday, Trump responded at the Chinese government’s action to strengthen its rules for overseas sales of critical elements, accusing Beijing of “turning aggressive” and attempting to hold the world “captive”.

Furthermore, he threatened to withdraw from a arranged meeting with Beijing’s head of state Xi Jinping, which was set for a summit in South Korea before the month ends.

The former president’s remarks on Friday shook financial markets, with the S&P 500 closing down over two and a half percent, marking its biggest drop since last spring.

These statements renewed apprehensions of a trade war between the two economic giants.

This past spring, the both nations had agreed to eliminate significant levies on each other’s products, which had created the possibility of bilateral trade stopping between the economic powers.

This left, US tariffs on products from China subject to an extra import tax compared with the start of the year, while items from the United States entering China face a ten percent duty.

The most recent comments from China – released by the relevant government department in the form of formal replies to journalist’s questions – mirrored rhetoric from the height of the ongoing trade dispute.

They criticised US export restrictions on semiconductors and chips while justifying China’s own overseas sale regulations on key elements as “normal actions” to ensure national security and that of the global community.

Their representative stated that for “an extended period”, the United States had “expanded the interpretation” of state security, misused overseas sale restrictions and “implemented” discriminatory practices against Beijing.

“Turning to” tariff threats is not the right way to deal with China,” the official said.

“Beijing’s stance” on a tariff war has consistently been steady: we are not seeking one, but we are not afraid of one.”

Recently, the Chinese government declared it was strengthening export controls on key elements and further resources critical for cutting-edge industry.

This was seen as a significant step, as the nation refines about 90% of the global rare earth supply, which are utilized in items such as photovoltaic modules and mobile phones.

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

Is not yet known whether a meeting between Donald Trump and China’s leader, planned at a summit in South Korea before month’s end, will still proceed.