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Donald Trump’s newest threat to impose an further complete levy on items imported from China has been described as a “prime illustration” of American hypocrisy, according to the China’s leadership.

A Commerce Ministry spokesperson additionally remarked that China could enact its own unspecified “responsive actions” if the American leader executes his pledge, noting that the country was “unafraid” of a looming trade war.

On Friday, Donald Trump responded at China’s decision to reinforce its regulations for exports of critical elements, alleging Beijing of “adopting a confrontational stance” and attempting to hold the world “hostage”.

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

Trump’s comments on Friday unsettled financial markets, with the S&P 500 dropping 2.7%, marking its biggest drop since April.

His comments renewed apprehensions of a trade war between the two economic giants.

This past spring, the respective governments had reached an agreement to drop high import duties on each other’s products, which had created the possibility of commerce ceasing between the two countries.

Consequently, American import duties on Chinese goods incurring an additional thirty percent tariff compared with the start of the year, while US goods entering the country incur a ten percent duty.

China’s latest remarks – released by the Commerce Ministry in the format of formal replies to press queries – mirrored language from the peak of the ongoing trade dispute.

They criticised United States controls on chips and semi-conductors while defending Beijing’s export controls on rare earths as “normal actions” to protect national security and that of all nations.

The spokesperson remarked that for “many years”, the America had “overstretched the concept of national security, exploited foreign shipment regulations and “enforced” discriminatory practices against Beijing.

“Turning to” tariff threats is not the correct approach to engage with the Chinese government,” the spokesperson stated.

“The nation’s view” on a import duty dispute has consistently been consistent: we are not seeking one, but we are fearless of one.”

The previous week, the Chinese government declared it was reinforcing foreign shipment restrictions on rare earth minerals and other materials critical for advanced tech manufacturing.

This move was regarded as a significant step, as the country processes about 90% of the world’s rare earths, which are employed in goods such as renewable energy components and handheld devices.

Latest statements from the US and China are being interpreted by observers as a strategy of bolstering negotiating stances prior to upcoming negotiations.

It is unclear whether a meeting between Donald Trump and Xi Jinping, expected at a summit in Seoul before month’s end, will still proceed.