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Donald Trump’s newest warning to introduce an extra complete levy on products from China has been called a “prime illustration” of United States’ contradictory behavior, according to the China’s leadership.

A representative of the ministry additionally remarked that Beijing could enact its own unrevealed “responsive actions” if the White House occupant carries out his threat, noting that the country was “unafraid” of a possible trade conflict.

This past Friday, Donald Trump responded at Beijing’s move to reinforce its regulations for exports of rare earths, accusing Beijing of “becoming very hostile” and attempting to hold the global community “hostage”.

Additionally, he threatened to withdraw from a planned summit with China’s President Xi, which was arranged for a summit in South Korea before the month ends.

Trump’s comments on that day shook financial markets, with the S&P 500 falling by over two and a half percent, marking its biggest drop since earlier this year.

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

Earlier this year, the two sides had agreed to eliminate high import duties on each other’s products, which had led to concerns of trade halting between the economic powers.

As a result, US tariffs on Chinese imports incurring an added import tax compared with the start of the year, while US goods entering China incur a import levy.

The most recent comments from China – issued by the relevant government department in the form of formal replies to journalist’s questions – echoed rhetoric from the height of the recent trade conflict.

Officials denounced United States controls on electronic components while justifying Beijing’s overseas sale regulations on rare earth minerals as “standard procedures” to safeguard state interests and that of every country.

The spokesperson remarked that for “an extended period”, the United States had “expanded the interpretation” of domestic safety, exploited foreign shipment regulations and “implemented” unfair treatments against Beijing.

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

“China’s position on a tariff war has remained consistent: we wish to avoid one, but we are not afraid of one.”

Last week, China announced it was strengthening foreign shipment restrictions on rare earth minerals and further resources essential to cutting-edge industry.

This was seen as a significant step, as the nation processes about 90% of the global rare earth supply, which are used in items such as renewable energy components and handheld devices.

New remarks from the US and China are being seen by analysts as a method of bolstering negotiating stances ahead of future trade talks.

It is unclear whether a talks between Donald Trump and President Xi, expected at a high-level meeting in Seoul later this month, will still proceed.