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Donald Trump’s most recent ultimatum to impose an further 100% tariff on products from China has been labeled a “prime illustration” of United States’ contradictory behavior, according to the Chinese government.

A representative of the ministry further commented that the nation could enact its own unrevealed “responsive actions” if the US President executes his pledge, noting that the country was “fearless” of a possible commercial battle.

Last Friday, Trump hit back at Beijing’s move to tighten its regulations for exports of rare earths, accusing Beijing of “becoming very hostile” and attempting to hold the international market “captive”.

He also warned to cancel a arranged meeting with Beijing’s head of state Xi Jinping, which was expected to take place during a conference in Seoul in the coming weeks.

His statements on that day unsettled stock exchanges, with the S&P 500 share index falling by over two and a half percent, marking its steepest fall since April.

These statements revived fears of a commercial dispute between the two economic giants.

In May, the respective governments had reached an agreement to eliminate triple-digit tariffs on each other’s goods, which had led to concerns of bilateral trade stopping between the two countries.

This left, US tariffs on Chinese imports subject to an added import tax compared with the start of the year, while items from the United States entering China face a import levy.

The most recent comments from China – released by the relevant government department in the form of written responses to media inquiries – mirrored language from the height of the recent trade conflict.

Officials denounced American limits on exports on electronic components while defending Beijing’s export controls on rare earths as “routine measures” to protect national security and that of the global community.

The official stated that for “a long time”, the America had “broadened the definition” of state security, misused foreign shipment regulations and “implemented” unfair treatments against China.

“Turning to” import duty warnings is not the correct approach to deal with the Chinese government,” the official commented.

“The nation’s view” on a tariff war has consistently been unchanging: we wish to avoid one, but we are not afraid of one.”

Recently, the Chinese government announced it was strengthening foreign shipment restrictions on rare earths and further resources essential to cutting-edge industry.

This was seen as a important measure, as the country refines about 90% of the planet’s critical minerals, which are utilized in goods such as renewable energy components and handheld devices.

Latest statements from both governments are being viewed by observers as a strategy of strengthening positions ahead of forthcoming discussions.

Is not yet known whether a talks between Trump and President Xi, expected at a conference in the Republic of Korea in the coming weeks, will still proceed.