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Trump’s newest ultimatum to enforce an additional 100% tariff on Chinese goods has been called a “classic case” of American hypocrisy, according to the Chinese government.

A Commerce Ministry spokesperson further commented that the nation could enact its own unspecified “countermeasures” if the White House occupant carries out his warning, noting that the country was “fearless” of a looming trade war.

On Friday, Trump hit back at the Chinese government’s action to reinforce its regulations for exports of critical elements, accusing the Chinese leadership of “becoming very hostile” and attempting to hold the world “captive”.

Furthermore, he vowed to withdraw from a arranged summit with China’s President Xi, which was set for a meeting in the Republic of Korea in the coming weeks.

Trump’s comments on Friday rattled financial markets, with the benchmark US stock index dropping over two and a half percent, marking its biggest drop since April.

His comments reignited fears of a commercial dispute between the US and China.

Earlier this year, the two sides had agreed to eliminate triple-digit tariffs on each other’s imports, which had raised the prospect of bilateral trade stopping between the two nations.

Consequently, United States levies on products from China incurring an additional import tax compared with the year’s onset, while US goods entering the Chinese market face a ten percent duty.

Beijing’s recent statements – released by the relevant government department in the format of formal replies to media inquiries – mirrored terminology from the zenith of the ongoing trade dispute.

The remarks condemned United States controls on chips and semi-conductors while justifying the country’s own restrictions on exports on key elements as “routine measures” to safeguard state interests and that of all nations.

The spokesperson said that for “many years”, the America had “broadened the definition” of domestic safety, misused export control measures and “enforced” discriminatory practices against Beijing.

“Using” tariff threats is not the correct approach to deal with the Chinese government,” the official stated.

“Beijing’s stance” on a trade conflict has consistently been steady: we are not seeking one, but we are unafraid of one.”

Last week, China declared it was tightening export controls on rare earth minerals and additional substances vital for cutting-edge industry.

This move was regarded as a key move, as the nation handles about the vast majority of the global rare earth supply, which are used in items such as renewable energy components and mobile phones.

The recent comments from Washington and Beijing are being viewed by some as a strategy of bolstering negotiating stances ahead of future trade talks.

It is unclear whether a summit between Trump and China’s leader, expected at a high-level meeting in South Korea later this month, will take place as planned.