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Donald Trump’s latest warning to impose an additional full import duty on items imported from China has been called a “typical example” of United States’ contradictory behavior, according to the China’s leadership.

A Commerce Ministry spokesperson further commented that Beijing could implement its own undisclosed “countermeasures” if the US President executes his warning, noting that the country was “not afraid” of a potential commercial battle.

On Friday, Donald Trump retaliated at Beijing’s move to tighten its regulations for foreign shipments of critical elements, charging Beijing of “adopting a confrontational stance” and attempting to hold the international market “hostage”.

Furthermore, he vowed to withdraw from a scheduled meeting with Beijing’s head of state Xi Jinping, which was arranged for a summit in Seoul later this month.

His statements on last Friday rattled financial markets, with the S&P 500 share index closing down over two and a half percent, marking its largest decline since earlier this year.

The president’s words renewed fears of a trade conflict between the US and China.

In May, the both nations had reached an agreement to drop significant levies on each other’s products, which had led to concerns of trade halting between the two countries.

This left, US tariffs on Chinese goods incurring an additional import tax compared with the start of the year, while US goods entering the Chinese market face a import levy.

Beijing’s recent statements – released by the Commerce Ministry in the manner of written responses to media inquiries – reflected language from the peak of the ongoing trade dispute.

They criticised United States controls on semiconductors and chips while defending China’s own overseas sale regulations on key elements as “normal actions” to protect state interests and that of all nations.

The official said that for “a long time”, the US had “broadened the definition” of national security, misused export control measures and “implemented” biased policies against China.

“Turning to” import duty warnings is not the correct approach to deal with China,” the official said.

“Beijing’s stance” on a tariff war has always been unchanging: we do not want one, but we are not afraid of one.”

Last week, the Chinese government declared it was reinforcing export controls on rare earth minerals and additional substances critical for high-technology production.

The action was viewed as a important measure, as the state handles about 90% of the global rare earth supply, which are employed in products such as solar panels and mobile phones.

Latest statements from the US and China are being interpreted by some as a method of strengthening positions in preparation for future trade talks.

Remains uncertain whether a summit between Donald Trump and Xi Jinping, scheduled at a high-level meeting in South Korea in the coming weeks, will go ahead.