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The former US president’s most recent ultimatum to enforce an extra 100% tariff on Chinese goods has been called a “prime illustration” of United States’ contradictory behavior, according to the Chinese government.

A official from China’s Commerce Ministry also stated that China could implement its own undisclosed “retaliatory steps” if the US President follows through on his warning, adding that the country was “fearless” of a looming trade conflict.

On Friday, the former president hit back at the Chinese government’s action to reinforce its regulations for overseas sales of rare earth minerals, alleging Beijing of “adopting a confrontational stance” and attempting to hold the international market “under its control”.

Furthermore, he threatened to cancel a arranged talks with Chinese leader Xi Jinping, which was arranged for a meeting in South Korea before the month ends.

Trump’s comments on that day rattled stock exchanges, with the S&P 500 share index falling by over two and a half percent, marking its biggest drop since April.

The president’s words revived concerns of a trade conflict between the United States and China.

Earlier this year, the two sides had consented to eliminate triple-digit tariffs on each other’s products, which had raised the prospect of bilateral trade stopping between the two countries.

This left, United States levies on products from China subject to an added import tax compared with the year’s onset, while US goods entering the Chinese market face a ten percent duty.

The most recent comments from China – released by the Commerce Ministry in the form of formal replies to journalist’s questions – echoed rhetoric from the zenith of the recent trade conflict.

The remarks condemned United States controls on semiconductors and chips while defending China’s own export controls on rare earths as “standard procedures” to protect state interests and that of all nations.

Their representative stated that for “an extended period”, the US had “broadened the definition” of national security, exploited export control measures and “adopted biased policies against the Chinese nation.

“Turning to” import duty warnings is not the correct approach to deal with the Chinese government,” their representative stated.

“China’s position on a tariff war has always been consistent: we are not seeking one, but we are unafraid of one.”

Last week, Beijing declared it was tightening overseas sale regulations on rare earths and further resources critical for advanced tech manufacturing.

This move was regarded as a key move, as the nation refines about the vast majority of the global rare earth supply, which are used in items such as solar panels and smartphones.

Latest statements from both governments are being interpreted by analysts as a method of strengthening positions prior to upcoming negotiations.

It is unclear whether a meeting between Donald Trump and President Xi, expected at a conference in Seoul in the coming weeks, will take place as planned.