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Donald Trump’s newest ultimatum to impose an further complete levy on items imported from China has been labeled a “prime illustration” of United States’ contradictory behavior, per the Beijing administration.

A Commerce Ministry spokesperson also stated that Beijing could introduce its own unrevealed “countermeasures” if the US President executes his warning, emphasizing that the country was “not afraid” of a possible commercial battle.

On Friday, the former president retaliated at China’s decision to strengthen its policies for overseas sales of rare earth minerals, alleging China of “becoming very hostile” and attempting to hold the international market “captive”.

Additionally, he warned to cancel a arranged talks with China’s President Xi, which was set for a meeting in Seoul in the coming weeks.

The former president’s remarks on Friday shook financial markets, with the S&P 500 dropping nearly three percent, marking its largest decline since last spring.

His comments revived fears of a trade conflict between the two economic giants.

In May, the both nations had consented to eliminate high import duties on each other’s goods, which had created the possibility of bilateral trade stopping between the two nations.

This left, American import duties on products from China incurring an additional import tax compared with the beginning of 2025, while items from the United States entering the country incur a import levy.

Beijing’s recent statements – issued by the Ministry of Commerce in the format of official answers to press queries – reflected terminology from the zenith of the latest commercial tensions.

The remarks condemned United States controls on semiconductors and chips while justifying Beijing’s overseas sale regulations on key elements as “normal actions” to ensure domestic safety and that of every country.

The official said that for “a long time”, the United States had “broadened the definition” of state security, misused overseas sale restrictions and “enforced” unfair treatments against the Chinese nation.

“Using” tariff threats is not the correct approach to engage with Beijing,” their representative commented.

“The nation’s view” on a trade conflict has always been steady: we are not seeking one, but we are unafraid of one.”

The previous week, Beijing announced it was reinforcing export controls on key elements and other materials essential to high-technology production.

This move was regarded as a important measure, as the country handles about the vast majority of the global rare earth supply, which are used in products such as photovoltaic modules and handheld devices.

New remarks from Washington and Beijing are being viewed by observers as a strategy of enhancing bargaining power in preparation for future trade talks.

It is unclear whether a talks between Donald Trump and President Xi, expected at a high-level meeting in the Republic of Korea in the coming weeks, will still proceed.