WASHINGTON (TNND) — High-level talks between the United States and China are set to take place this weekend, aiming to ease the tariff tensions that have sent shockwaves through the global economy. Treasury Secretary Scott Bessent, along with other top trade officials, will meet with their Chinese counterparts in Switzerland on Saturday and Sunday.

Look, we have shared interests that this isn't sustainable," Bessent told Fox News Tuesday night. "As I said before, especially on the Chinese side. And, you know, 145%, 125% is the equivalent of an embargo. We don't want to decouple.

Bessent has been addressing House committees this week regarding various Trump trade policies. Democrats have tried to squeeze him and the administration on the market chaos that has taken place and recently cooled off since the President's tariff announcements in April. He also told a House committee on Wednesday that tariff exemptions for baby products are under consideration. Some retailers have shared sticker shock price increases with customers for baby items, including strollers, that have been a cause for concern in the baby product space.

The Trump administration's imposition of a 145% tariff on Chinese goods was met with a 125% tariff from China on American goods. This tit-for-tat has strained the economic relationship, slowing shipments and Chinese factory outputs, and prompting warnings from retailers about potential supply shortages due to the trade war. The President has defended his trade policies by suggesting Americans don't need to buy as much stuff, and also promising a long-term gain.

"We were losing with China on trade a trillion dollars a year, more actually, 1.1, but let’s say a trillion. You know what we’re losing now? Nothing. That’s not bad," President Trump told reporters Wednesday.

While a trade deal with China may not be imminent, investors view the upcoming talks as a positive step.

"This is about de-escalation, it’s not about coming to terms on trade deal. But it’s a good first step, at least they’re talking, investors like that," said Shah Gilani, Chief Investment Strategist at Manward Press.

China has also been attempting to persuade other countries not to make deals with the US, which could further isolate China in the trade war.

Analysts will be closely monitoring the outcome of this weekend's talks to see if either nation makes a significant move. Investors will also be anxiously watching to see if the talks can instill confidence in the market.