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Donald Trump’s latest threat to impose an further 100% tariff on products from China has been labeled a “classic case” of United States’ contradictory behavior, according to the Beijing administration.

A official from China’s Commerce Ministry also stated that China could implement its own unrevealed “retaliatory steps” if the US President carries out his pledge, noting that the country was “not afraid” of a potential trade conflict.

On Friday, the former president retaliated at the Chinese government’s action to reinforce its rules for foreign shipments of rare earths, accusing China of “adopting a confrontational stance” and attempting to hold the global community “under its control”.

Furthermore, he threatened to withdraw from a arranged summit with Chinese leader Xi Jinping, which was arranged for a summit in South Korea later this month.

Trump’s comments on Friday rattled financial markets, with the S&P 500 falling by 2.7%, marking its steepest fall since earlier this year.

These statements renewed fears of a trade conflict between the United States and China.

In May, the two sides had consented to eliminate triple-digit tariffs on each other’s imports, which had led to concerns of trade halting between the two nations.

As a result, US tariffs on Chinese imports incurring an added thirty percent tariff compared with the year’s onset, while US goods entering China face a import levy.

The most recent comments from China – issued by the Commerce Ministry in the manner of written responses to journalist’s questions – echoed language from the height of the latest commercial tensions.

Officials denounced American limits on exports on semiconductors and chips while supporting the country’s own overseas sale regulations on rare earths as “standard procedures” to protect national security and that of all nations.

The official remarked that for “an extended period”, the United States had “expanded the interpretation” of domestic safety, exploited overseas sale restrictions and “adopted biased policies against Beijing.

“Using” tariff threats is not the right way to interact with China,” the official stated.

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

The previous week, Beijing revealed it was reinforcing export controls on rare earths and additional substances vital for high-technology production.

This was seen as a important measure, as the country handles about 90% of the global rare earth supply, which are utilized in goods such as photovoltaic modules and handheld devices.

New remarks from the US and China are being interpreted by observers as a method of enhancing bargaining power ahead of upcoming negotiations.

Is not yet known whether a summit between the former president and China’s leader, planned at a summit in the Republic of Korea in the coming weeks, will go ahead.