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Donald Trump’s newest ultimatum to introduce an further complete levy on Chinese goods has been called a “classic case” of US double standards, per the China’s leadership.

A official from China’s Commerce Ministry also stated that Beijing could enact its own unrevealed “responsive actions” if the American leader follows through on his threat, emphasizing that the country was “not afraid” of a potential trade war.

On Friday, Trump hit back at Beijing’s move to strengthen its rules for exports of rare earths, accusing the Chinese leadership of “becoming very hostile” and attempting to hold the world “captive”.

He also warned to pull out of a arranged talks with Chinese leader President Xi, which was expected to take place during a meeting in South Korea before the month ends.

His statements on Friday rattled global markets, with the benchmark US stock index falling by over two and a half percent, marking its biggest drop since last spring.

These statements reignited concerns of a trade conflict between the two economic giants.

Earlier this year, the both nations had reached an agreement to eliminate significant levies on each other’s products, which had led to concerns of commerce ceasing between the two nations.

As a result, United States levies on Chinese imports facing an additional 30% levy compared with the start of the year, while American products entering the country face a 10% tariff.

The most recent comments from China – published by the relevant government department in the form of formal replies to press queries – echoed rhetoric from the peak of the ongoing trade dispute.

They criticised United States controls on semiconductors and chips while justifying the country’s own overseas sale regulations on rare earths as “standard procedures” to ensure domestic safety and that of all nations.

Their representative remarked that for “many years”, the United States had “overstretched the concept of domestic safety, exploited foreign shipment regulations and “implemented” unfair treatments against the Chinese nation.

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

“China’s position on a tariff war has always been unchanging: we are not seeking one, but we are not afraid of one.”

Recently, Beijing declared it was strengthening foreign shipment restrictions on key elements and additional substances essential to cutting-edge industry.

This was seen as a significant step, as the nation processes about the vast majority of the world’s rare earths, which are employed in goods such as solar panels and mobile phones.

The recent comments from the US and China are being viewed by analysts as a method of bolstering negotiating stances prior to forthcoming discussions.

It is unclear whether a meeting between Donald Trump and President Xi, scheduled at a high-level meeting in the Republic of Korea in the coming weeks, will take place as planned.