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Trump’s newest ultimatum to enforce an further 100% tariff on Chinese goods has been labeled a “typical example” of United States’ contradictory behavior, per the Chinese government.

A Commerce Ministry spokesperson also stated that China could implement its own unrevealed “responsive actions” if the White House occupant carries out his threat, emphasizing that the country was “fearless” of a looming trade conflict.

This past Friday, Trump responded at the Chinese government’s action to tighten its policies for overseas sales of rare earth minerals, alleging the Chinese leadership of “adopting a confrontational stance” and attempting to hold the world “captive”.

Additionally, he vowed to cancel a scheduled meeting with China’s President President Xi, which was set for a conference in South Korea before the month ends.

His statements on that day unsettled financial markets, with the S&P 500 share index dropping 2.7%, marking its biggest drop since April.

His comments reignited concerns of a commercial dispute between the two economic giants.

This past spring, the respective governments had agreed to drop triple-digit tariffs on each other’s goods, which had created the possibility of bilateral trade stopping between the two countries.

This left, American import duties on Chinese goods incurring an extra thirty percent tariff compared with the beginning of 2025, while items from the United States entering the country incur a import levy.

China’s latest remarks – published by the Commerce Ministry in the form of formal replies to journalist’s questions – mirrored language from the peak of the recent trade conflict.

They criticised United States controls on chips and semi-conductors while justifying China’s own export controls on rare earths as “standard procedures” to safeguard national security and that of all nations.

The official said that for “an extended period”, the US had “overstretched the concept of national security, misused export control measures and “enforced” unfair treatments against the Chinese nation.

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

“Beijing’s stance” on a trade conflict has always been unchanging: we wish to avoid one, but we are fearless of one.”

Last week, China announced it was reinforcing export controls on rare earth minerals and other materials essential to high-technology production.

This move was regarded as a key move, as the country processes about 90% of the planet’s critical minerals, which are utilized in products such as photovoltaic modules and smartphones.

Latest statements from the US and China are being interpreted by analysts as a strategy of enhancing bargaining power prior to forthcoming discussions.

Is not yet known whether a summit between Donald Trump and President Xi, planned at a conference in the Republic of Korea before month’s end, will go ahead.