🔗 Share this article

The former US president’s most recent ultimatum to introduce an further 100% tariff on products from China has been described as a “prime illustration” of American hypocrisy, as stated by the Chinese government.

A official from China’s Commerce Ministry additionally remarked that China could enact its own unspecified “retaliatory steps” if the US President follows through on his threat, adding that the country was “fearless” of a looming commercial battle.

This past Friday, Donald Trump hit back at China’s decision to tighten its regulations for overseas sales of rare earths, alleging Beijing of “becoming very hostile” and attempting to hold the world “hostage”.

Furthermore, he vowed to cancel a planned summit with Chinese leader Xi Jinping, which was expected to take place during a summit in the Republic of Korea in the coming weeks.

Trump’s comments on Friday unsettled financial markets, with the benchmark US stock index dropping over two and a half percent, marking its steepest fall since April.

The president’s words revived concerns of a commercial dispute between the two economic giants.

Earlier this year, the respective governments had agreed to drop high import duties on each other’s goods, which had led to concerns of trade halting between the economic powers.

This left, United States levies on products from China facing an extra thirty percent tariff compared with the year’s onset, while American products entering China incur a ten percent duty.

The most recent comments from China – issued by the relevant government department in the form of formal replies to journalist’s questions – echoed language from the height of the latest commercial tensions.

Officials denounced US export restrictions on chips and semi-conductors while supporting China’s own restrictions on exports on rare earth minerals as “routine measures” to ensure state interests and that of every country.

The spokesperson said that for “many years”, the United States had “overstretched the concept of domestic safety, exploited overseas sale restrictions and “enforced” biased policies against Beijing.

“Resorting to trade levy ultimatums is not the correct approach to engage with the Chinese government,” their representative stated.

“Beijing’s stance” on a tariff war has remained consistent: we do not want one, but we are unafraid of one.”

The previous week, Beijing announced it was strengthening export controls on rare earths and other materials vital for high-technology production.

The action was viewed as a important measure, as the country handles about 90% of the world’s rare earths, which are used in goods such as renewable energy components and handheld devices.

Latest statements from Washington and Beijing are being seen by some as a method of enhancing bargaining power ahead of upcoming negotiations.

It is unclear whether a meeting between the former president and China’s leader, scheduled at a high-level meeting in South Korea in the coming weeks, will still proceed.