06:36 AM EDT, 05/07/2025 (MT Newswires) -- Another important development this week relates to the progress with United States-China talks, following the sharp escalation in April, with bilateral tariffs skyrocketing, said ABN Amro.

U.S. tariffs on China's good are at 145% while vice versa they are 125%.

While the U.S., pressured by financial markets and corporate lobbying, had already exempted consumer electronics and car parts from these high country-specific tariffs, recently U.S. officials were increasing their calls on China to get to the negotiation table, wrote the bank in a notet.

China initially played 'hard to get', but a more conciliatory tone was seen more recently and late Tuesday, it was announced that talks on de-escalation between the two giants will be held this weekend in Switzerland, pointed out ABN Amro.

The U.S. delegation will be led by Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer, while Vice Premier He Lifeng will lead the Chinese delegation.

Although China has several reasons to play it "tough," the bank still thinks that both countries could benefit from de-escalation, given the big interests at stake and the fact that the trade war is damaging for both the U.S. and Chinese economies.