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Donald Trump’s newest warning to enforce an further full import duty on Chinese goods has been labeled a “classic case” of American hypocrisy, according to the Chinese government.

A representative of the ministry also stated that the nation could implement its own unspecified “responsive actions” if the US President executes his warning, adding that the country was “not afraid” of a looming commercial battle.

Last Friday, the former president retaliated at China’s decision to strengthen its rules for foreign shipments of rare earth minerals, charging Beijing of “turning aggressive” and attempting to hold the world “captive”.

Additionally, he warned to cancel a arranged meeting with Chinese leader Xi, which was arranged for a summit in South Korea in the coming weeks.

His statements on Friday shook stock exchanges, with the S&P 500 falling by 2.7%, marking its biggest drop since April.

These statements reignited fears of a trade war between the US and China.

In May, the both nations had agreed to remove significant levies on each other’s goods, which had created the possibility of trade halting between the two nations.

Consequently, United States levies on Chinese goods facing an added 30% levy compared with the start of the year, while American products entering the country are subject to a 10% tariff.

China’s latest remarks – released by the Ministry of Commerce in the manner of written responses to media inquiries – reflected rhetoric from the zenith of the recent trade conflict.

They criticised American limits on exports on chips and semi-conductors while justifying Beijing’s restrictions on exports on key elements as “standard procedures” to safeguard domestic safety and that of all nations.

The official remarked that for “many years”, the US had “overstretched the concept of domestic safety, abused foreign shipment regulations and “implemented” unfair treatments against Beijing.

“Using” import duty warnings is not the correct approach to engage with China,” their representative said.

“China’s position on a import duty dispute has remained unchanging: we are not seeking one, but we are unafraid of one.”

Recently, the Chinese government announced it was reinforcing export controls on rare earths and additional substances essential to cutting-edge industry.

The action was viewed as a key move, as the nation processes about 90% of the world’s rare earths, which are used in products such as solar panels and smartphones.

The recent comments from Washington and Beijing are being viewed by observers as a strategy of enhancing bargaining power prior to forthcoming discussions.

Is not yet known whether a meeting between Trump and Xi Jinping, planned at a high-level meeting in South Korea in the coming weeks, will still proceed.