China criticised the US for what it called a case of hypocrisy after Donald Trump threatened to impose a further 100% duty on Chinese imports, according to BBC. A representative from China’s Ministry of Commerce stated that the country was ready to take reciprocal action should the US proceed, emphasising that China remained unshaken by the prospect of renewed trade tensions.

The tension escalated after Trump criticised China for tightening export rules on rare earth materials, accusing Beijing of “hostility” and of attempting to hold global supply chains “captive.” He also hinted that he might cancel a planned meeting with President Xi Jinping later this month. The remarks triggered a 2.7% decline in the S&P 500 index, its sharpest drop since April, amid renewed concerns of a trade war.

In May, both nations had agreed to roll back heavy tariffs that had stalled trade flows. Despite that, Chinese goods in the US remain subject to a 30% duty compared with the start of the year, while US exports to China face a 10% tariff.

China’s latest statement also criticised US export restrictions on semiconductors and chips, describing them as an abuse of national security provisions. The ministry defended its own curbs on rare earth exports, calling them legitimate steps to safeguard security interests.

With Beijing controlling nearly 90% of global rare earth processing, its move is widely seen as strategic leverage. Analysts suggest both powers are reinforcing their positions ahead of possible trade discussions, though the planned Xi–Trump meeting remains uncertain.