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Donald Trump’s latest threat to enforce an additional full import duty on items imported from China has been called a “prime illustration” of United States’ contradictory behavior, according to the Chinese government.

A Commerce Ministry spokesperson further commented that the nation could enact its own undisclosed “retaliatory steps” if the American leader executes his pledge, adding that the country was “not afraid” of a possible commercial battle.

Last Friday, the former president retaliated at Beijing’s move to reinforce its rules for foreign shipments of critical elements, accusing the Chinese leadership of “becoming very hostile” and attempting to hold the international market “captive”.

He also vowed to pull out of a scheduled meeting with Chinese leader President Xi, which was expected to take place during a summit in the Republic of Korea before the month ends.

Trump’s comments on Friday shook global markets, with the S&P 500 dropping over two and a half percent, marking its biggest drop since April.

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

This past spring, the both nations had consented to remove triple-digit tariffs on each other’s products, which had raised the prospect of commerce ceasing between the two countries.

As a result, American import duties on Chinese goods facing an added 30% levy compared with the start of the year, while American products entering China are subject to a 10% tariff.

China’s latest remarks – released by the Ministry of Commerce in the format of official answers to journalist’s questions – mirrored rhetoric from the zenith of the latest commercial tensions.

The remarks condemned US export restrictions on semiconductors and chips while supporting China’s own overseas sale regulations on rare earth minerals as “normal actions” to ensure state interests and that of the global community.

Their representative said that for “an extended period”, the US had “expanded the interpretation” of domestic safety, exploited export control measures and “implemented” unfair treatments against Beijing.

“Turning to” import duty warnings is not the correct approach to deal with Beijing,” their representative said.

“The nation’s view” on a import duty dispute has always been steady: we are not seeking one, but we are fearless of one.”

The previous week, the Chinese government announced it was tightening overseas sale regulations on rare earth minerals and further resources essential to advanced tech manufacturing.

This was seen as a key move, as the country handles about the vast majority of the global rare earth supply, which are utilized in goods such as solar panels and handheld devices.

The recent comments from both governments are being seen by observers as a strategy of strengthening positions ahead of upcoming negotiations.

It is unclear whether a meeting between Trump and Xi Jinping, planned at a summit in South Korea before month’s end, will go ahead.