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Donald Trump’s newest warning to enforce an extra 100% tariff on Chinese goods has been described as a “prime illustration” of United States’ contradictory behavior, as stated by the Chinese government.

A official from China’s Commerce Ministry further commented that Beijing could implement its own unrevealed “retaliatory steps” if the American leader executes his warning, emphasizing that the country was “fearless” of a potential trade conflict.

This past Friday, Donald Trump hit back at the Chinese government’s action to tighten its rules for exports of rare earths, alleging the Chinese leadership of “turning aggressive” and attempting to hold the global community “under its control”.

Furthermore, he threatened to withdraw from a arranged summit with Chinese leader President Xi, which was expected to take place during a meeting in Seoul before the month ends.

Trump’s comments on Friday rattled global markets, with the S&P 500 dropping 2.7%, marking its biggest drop since last spring.

The president’s words renewed fears of a trade conflict between the two economic giants.

This past spring, the both nations had consented to eliminate significant levies on each other’s goods, which had raised the prospect of bilateral trade stopping between the two nations.

Consequently, US tariffs on Chinese imports subject to an additional thirty percent tariff compared with the beginning of 2025, while American products entering China incur a 10% tariff.

Beijing’s recent statements – issued by the Commerce Ministry in the format of official answers to journalist’s questions – mirrored rhetoric from the height of the latest commercial tensions.

They criticised US export restrictions on semiconductors and chips while defending China’s own export controls on rare earths as “routine measures” to protect domestic safety and that of all nations.

The spokesperson said that for “an extended period”, the US had “broadened the definition” of state security, exploited export control measures and “enforced” discriminatory practices against the Chinese nation.

“Turning to” tariff threats is not the right way to interact with Beijing,” the spokesperson stated.

“China’s position on a trade conflict has consistently been consistent: we are not seeking one, but we are not afraid of one.”

Recently, the Chinese government revealed it was reinforcing overseas sale regulations on rare earth minerals and further resources essential to advanced tech manufacturing.

This move was regarded as a significant step, as the state refines about ninety percent of the global rare earth supply, which are employed in products such as solar panels and smartphones.

The recent comments from Washington and Beijing are being interpreted by some as a means of enhancing bargaining power prior to future trade talks.

It is unclear whether a talks between Trump and Xi Jinping, expected at a high-level meeting in South Korea later this month, will go ahead.