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Donald Trump’s latest warning to enforce an extra full import duty on items imported from China has been labeled a “prime illustration” of United States’ contradictory behavior, according to the Chinese government.

A Commerce Ministry spokesperson further commented that Beijing could enact its own unspecified “retaliatory steps” if the White House occupant carries out his threat, adding that the country was “unafraid” of a possible commercial battle.

On Friday, Trump hit back at Beijing’s move to reinforce its rules for foreign shipments of rare earth minerals, charging Beijing of “adopting a confrontational stance” and attempting to hold the global community “hostage”.

He also warned to cancel a planned summit with China’s President Xi, which was expected to take place during a meeting in Seoul later this month.

His statements on last Friday shook financial markets, with the benchmark US stock index dropping nearly three percent, marking its biggest drop since April.

These statements renewed concerns of a trade conflict between the two economic giants.

In May, the two sides had reached an agreement to drop triple-digit tariffs on each other’s products, which had created the possibility of trade halting between the economic powers.

This left, United States levies on Chinese goods subject to an extra 30% levy compared with the year’s onset, while items from the United States entering the Chinese market incur a 10% tariff.

China’s latest remarks – published by the Commerce Ministry in the form of formal replies to press queries – reflected rhetoric from the peak of the latest commercial tensions.

The remarks condemned US export restrictions on semiconductors and chips while defending the country’s own export controls on rare earths as “normal actions” to safeguard national security and that of every country.

Their representative said that for “an extended period”, the United States had “overstretched the concept of domestic safety, misused export control measures and “implemented” discriminatory practices against the Chinese nation.

“Using” trade levy ultimatums is not the proper method to interact with China,” their representative said.

“China’s position on a tariff war has remained steady: we do not want one, but we are unafraid of one.”

The previous week, China revealed it was tightening overseas sale regulations on rare earth minerals and additional substances critical for cutting-edge industry.

This move was regarded as a important measure, as the country processes about ninety percent of the global rare earth supply, which are used in goods such as renewable energy components and mobile phones.

New remarks from Washington and Beijing are being seen by analysts as a strategy of bolstering negotiating stances prior to forthcoming discussions.

Remains uncertain whether a talks between Donald Trump and Xi Jinping, scheduled at a summit in the Republic of Korea before month’s end, will go ahead.