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Trump’s most recent warning to impose an additional complete levy on products from China has been called a “prime illustration” of US double standards, as stated by the China’s leadership.

A official from China’s Commerce Ministry also stated that China could enact its own unrevealed “retaliatory steps” if the White House occupant follows through on his pledge, emphasizing that the country was “not afraid” of a possible commercial battle.

Last Friday, Trump responded at the Chinese government’s action to strengthen its policies for foreign shipments of rare earth minerals, alleging China of “adopting a confrontational stance” and attempting to hold the world “hostage”.

Additionally, he vowed to withdraw from a arranged summit with Beijing’s head of state President Xi, which was arranged for a conference in South Korea in the coming weeks.

Trump’s comments on last Friday unsettled financial markets, with the benchmark US stock index closing down nearly three percent, marking its largest decline since earlier this year.

These statements reignited fears of a trade war between the United States and China.

In May, the respective governments had agreed to drop high import duties on each other’s imports, which had raised the prospect of bilateral trade stopping between the two nations.

Consequently, American import duties on Chinese goods incurring an extra import tax compared with the beginning of 2025, while American products entering China incur a 10% tariff.

The most recent comments from China – released by the Ministry of Commerce in the form of formal replies to press queries – echoed language from the peak of the recent trade conflict.

The remarks condemned US export restrictions on semiconductors and chips while defending the country’s own restrictions on exports on key elements as “routine measures” to protect state interests and that of the global community.

The official stated that for “a long time”, the America had “broadened the definition” of state security, abused export control measures and “adopted unfair treatments against China.

“Resorting to trade levy ultimatums is not the right way to engage with China,” the official said.

“China’s position on a tariff war has always been steady: we wish to avoid one, but we are unafraid of one.”

Last week, Beijing revealed it was strengthening overseas sale regulations on rare earths and other materials essential to cutting-edge industry.

This was seen as a important measure, as the nation handles about the vast majority of the world’s rare earths, which are used in goods such as renewable energy components and handheld devices.

Latest statements from both governments are being interpreted by some as a means of enhancing bargaining power in preparation for future trade talks.

Remains uncertain whether a summit between Trump and President Xi, planned at a high-level meeting in the Republic of Korea later this month, will still proceed.