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Trump’s most recent warning to impose an extra complete levy on Chinese goods has been described as a “typical example” of American hypocrisy, according to the China’s leadership.

A official from China’s Commerce Ministry also stated that Beijing could implement its own unspecified “countermeasures” if the White House occupant executes his threat, adding that the country was “not afraid” of a looming trade war.

This past Friday, Trump hit back at China’s decision to tighten its policies for exports of rare earth minerals, alleging Beijing of “becoming very hostile” and attempting to hold the international market “hostage”.

He also warned to cancel a scheduled meeting with China’s President Xi Jinping, which was arranged for a conference in South Korea later this month.

His statements on that day unsettled global markets, with the S&P 500 share index closing down over two and a half percent, marking its steepest fall since April.

These statements reignited fears of a trade conflict between the two economic giants.

This past spring, the respective governments had agreed to remove significant levies on each other’s products, which had raised the prospect of trade halting between the economic powers.

This left, United States levies on products from China subject to an added import tax compared with the beginning of 2025, while items from the United States entering the country incur a import levy.

Beijing’s recent statements – issued by the relevant government department in the manner of written responses to journalist’s questions – reflected language from the peak of the latest commercial tensions.

The remarks condemned US export restrictions on chips and semi-conductors while justifying the country’s own overseas sale regulations on rare earths as “routine measures” to safeguard national security and that of the global community.

The official said that for “an extended period”, the US had “broadened the definition” of state security, exploited export control measures and “adopted discriminatory practices against China.

“Turning to” tariff threats is not the correct approach to deal with China,” their representative said.

“China’s position on a import duty dispute has always been steady: we wish to avoid one, but we are not afraid of one.”

The previous week, the Chinese government declared it was reinforcing overseas sale regulations on key elements and other materials critical for advanced tech manufacturing.

The action was viewed as a important measure, as the nation processes about 90% of the planet’s critical minerals, which are utilized in goods such as photovoltaic modules and mobile phones.

The recent comments from both governments are being viewed by analysts as a method of strengthening positions in preparation for upcoming negotiations.

Remains uncertain whether a meeting between Donald Trump and Xi Jinping, scheduled at a conference in the Republic of Korea in the coming weeks, will go ahead.