🔗 Share this article

Trump’s latest ultimatum to enforce an extra full import duty on products from China has been labeled a “classic case” of American hypocrisy, as stated by the China’s leadership.

A representative of the ministry further commented that China could enact its own undisclosed “responsive actions” if the US President executes his threat, adding that the country was “not afraid” of a possible trade conflict.

This past Friday, the former president responded at China’s decision to strengthen its rules for exports of rare earth minerals, accusing the Chinese leadership of “adopting a confrontational stance” and attempting to hold the international market “hostage”.

Furthermore, he warned to withdraw from a scheduled talks with Chinese leader President Xi, which was expected to take place during a meeting in the Republic of Korea before the month ends.

The former president’s remarks on Friday rattled stock exchanges, with the S&P 500 falling by nearly three percent, marking its largest decline since earlier this year.

These statements revived fears of a commercial dispute between the two economic giants.

In May, the both nations had reached an agreement to drop significant levies on each other’s products, which had raised the prospect of bilateral trade stopping between the economic powers.

As a result, American import duties on Chinese goods facing an extra import tax compared with the start of the year, while US goods entering the Chinese market incur a import levy.

The most recent comments from China – released by the Commerce Ministry in the form of official answers to press queries – echoed language from the peak of the latest commercial tensions.

They criticised American limits on exports on chips and semi-conductors while defending Beijing’s export controls on rare earths as “standard procedures” to ensure domestic safety and that of every country.

The spokesperson said that for “an extended period”, the America had “expanded the interpretation” of national security, abused export control measures and “adopted discriminatory practices against Beijing.

“Turning to” trade levy ultimatums is not the correct approach to deal with China,” the official said.

“Beijing’s stance” on a tariff war has always been consistent: we wish to avoid one, but we are unafraid of one.”

Last week, Beijing announced it was reinforcing export controls on key elements and further resources critical for advanced tech manufacturing.

The action was viewed as a significant step, as the country handles about the vast majority of the global rare earth supply, which are utilized in items such as photovoltaic modules and handheld devices.

New remarks from both governments are being interpreted by observers as a means of enhancing bargaining power ahead of future trade talks.

Remains uncertain whether a summit between Trump and China’s leader, scheduled at a high-level meeting in South Korea before month’s end, will still proceed.