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Trump’s latest warning to enforce an further complete levy on items imported from China has been called a “prime illustration” of American hypocrisy, according to the Chinese government.

A representative of the ministry also stated that Beijing could introduce its own unspecified “retaliatory steps” if the White House occupant carries out his warning, noting that the country was “fearless” of a looming trade war.

On Friday, the former president retaliated at China’s decision to reinforce its policies for exports of rare earths, alleging China of “becoming very hostile” and attempting to hold the global community “under its control”.

Additionally, he warned to pull out of a planned summit with Beijing’s head of state Xi Jinping, which was arranged for a conference in South Korea later this month.

Trump’s comments on last Friday unsettled financial markets, with the S&P 500 share index dropping nearly three percent, marking its steepest fall since April.

These statements revived fears of a trade war between the US and China.

Earlier this year, the respective governments had reached an agreement to eliminate significant levies on each other’s goods, which had led to concerns of bilateral trade stopping between the two countries.

This left, United States levies on Chinese goods incurring an added import tax compared with the start of the year, while American products entering the Chinese market are subject to a import levy.

Beijing’s recent statements – issued by the Commerce Ministry in the format of official answers to media inquiries – reflected terminology from the peak of the recent trade conflict.

The remarks condemned American limits on exports on chips and semi-conductors while supporting Beijing’s export controls on key elements as “standard procedures” to ensure national security and that of the global community.

Their representative said that for “an extended period”, the America had “broadened the definition” of domestic safety, misused overseas sale restrictions and “enforced” discriminatory practices against Beijing.

“Using” import duty warnings is not the proper method to deal with Beijing,” their representative said.

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

Last week, China announced it was reinforcing foreign shipment restrictions on rare earth minerals and further resources essential to cutting-edge industry.

This was seen as a key move, as the state refines about 90% of the world’s rare earths, which are used in goods such as solar panels and mobile phones.

New remarks from Washington and Beijing are being interpreted by some as a strategy of strengthening positions prior to forthcoming discussions.

Is not yet known whether a talks between the former president and Xi Jinping, scheduled at a conference in Seoul in the coming weeks, will still proceed.