Donald Trump's latest threat to impose an additional 100% tariff on Chinese goods is 'a typical example of US double standards', China's government has said.

A commerce ministry spokesperson also stated that China could introduce its own unspecified 'countermeasures' if the US president carries out his threat, emphasizing that it is 'not afraid' of a possible trade war.

On Friday, Trump reacted to Beijing's tightening of regulations concerning rare earths exports, accusing China of 'becoming very hostile' and attempting to hold the world 'captive'. He also mentioned the possibility of withdrawing from an upcoming meeting with China's President Xi Jinping.

However, Trump later reassured that 'Don't worry about China, it will all be fine!' on social media, adding, 'Highly respected President Xi just had a bad moment. He doesn't want depression for his country, and neither do I. The U.S.A. wants to help China, not hurt it!!!'

Following Trump's comments, financial markets reacted negatively, with the S&P 500 index declining by 2.7%, marking the largest drop since April. The Shenzhen Component Index in mainland China fell more than 2.5%, while Hong Kong's Hang Seng index dropped approximately 3.5%.

The renewed fears of a trade war stem from the fact that in May, the two nations had agreed to eliminate triple-digit tariffs on each other’s goods, a move which aimed to stabilize trade relations. Currently, US tariffs on Chinese imports are facing an additional 30% levy compared to the beginning of the year, while goods entering China are subject to a 10% tariff.

China's response included criticism of US export restrictions on chips and semiconductors, while defending its own export controls on rare earths as 'normal actions' to protect national security. The spokesperson indicated that the US has over-extended the concept of national security and adopted discriminatory practices against China.

'Resorting to tariff threats is not the right way to engage with China,' the spokesperson stated, highlighting that China's position has always been to avoid a tariff war but that it remains vigilant and prepared to defend its interests.

An essential aspect of the conflict lies in China's recent announcement regarding tightened export controls on rare earths, critical components in advanced technology like solar panels and smartphones. The comments made by both Washington and Beijing are perceived as leverage in anticipation of future trade negotiations.

Ultimately, the fate of the upcoming meeting between Trump and Xi remains uncertain, which is scheduled for a summit in South Korea later this month.