🔗 Share this article

Trump’s newest ultimatum to enforce an extra full import duty on Chinese goods has been called a “prime illustration” of United States’ contradictory behavior, according to the Chinese government.

A Commerce Ministry spokesperson further commented that China could enact its own unspecified “retaliatory steps” if the White House occupant follows through on his warning, adding that the country was “not afraid” of a looming commercial battle.

On Friday, Trump responded at Beijing’s move to strengthen its regulations for exports of critical elements, alleging Beijing of “adopting a confrontational stance” and attempting to hold the international market “hostage”.

He also vowed to withdraw from a planned summit with China’s President President Xi, which was set for a conference in the Republic of Korea before the month ends.

His statements on Friday rattled global markets, with the benchmark US stock index dropping nearly three percent, marking its biggest drop since last spring.

These statements revived concerns of a trade war between the two economic giants.

In May, the two sides had reached an agreement to remove triple-digit tariffs on each other’s imports, which had created the possibility of trade halting between the economic powers.

This left, American import duties on Chinese imports incurring an additional 30% levy compared with the beginning of 2025, while US goods entering China incur a ten percent duty.

China’s latest remarks – issued by the relevant government department in the manner of formal replies to press queries – reflected rhetoric from the height of the latest commercial tensions.

They criticised US export restrictions on chips and semi-conductors while defending the country’s own overseas sale regulations on key elements as “standard procedures” to safeguard state interests and that of the global community.

The official remarked that for “an extended period”, the US had “broadened the definition” of state security, misused foreign shipment regulations and “enforced” unfair treatments against the Chinese nation.

“Resorting to tariff threats is not the correct approach to engage with Beijing,” their representative stated.

“The nation’s view” on a trade conflict has remained consistent: we do not want one, but we are fearless of one.”

Last week, Beijing revealed it was strengthening overseas sale regulations on key elements and other materials critical for advanced tech manufacturing.

This move was regarded as a important measure, as the state handles about 90% of the planet’s critical minerals, which are utilized in products such as renewable energy components and handheld devices.

Latest statements from the US and China are being viewed by observers as a strategy of strengthening positions ahead of forthcoming discussions.

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