A relief rally swept global equity markets on Wednesday morning amid clear signs from the United States administration that there could soon be a "de-escalation" in the trade tensions between the US and China.

US Treasury Secretary Scott Bessent told investors at a closed-door meeting in Washington, DC, on Tuesday that there will be a "de-escalation" in the tariff tensions with China in the "very near future", CNBC reported.

"No one thinks the current status quo is sustainable," Bessent said, adding that the prospect of de-escalation between the world's two largest economies "should give the world, the markets a sigh of relief".

Later on Tuesday, White House Press Secretary Karoline Leavitt told reporters at the daily news briefing that US President Donald Trump wanted people to know that "we're doing very well in respect to a potential trade deal with China".

In response to the latest comments of Trump and Bessent on trade tensions between the two countries, Foreign Ministry spokesman Guo Jiakun said on Wednesday that if the US truly wishes to solve tariff-related issues with China through dialogue and negotiations, it must stop threatening and extorting, and conduct the dialogue on the basis of equality, respect and mutual benefits.

Trump reportedly said the final tariff on Chinese imports would come down "substantially" from the current 145 percent, but that "it won't be zero". Meanwhile, Bessent said the high tariffs have effectively embargoed trade between the two economies, and the goal is not to have a hard break or complete decoupling.

In response, Guo said that China has long pointed out that there are no winners in tariff and trade wars, protectionism has no way out, and decoupling and breaking the industrial chain will only lead to self-isolation.

As the tariffs threatened to have a major impact on goods sales, the US retail industry sought leniency. The CEOs of Walmart, Target and Home Depot met with Trump at the White House on Monday in an effort to negotiate favorable deals.

While Trump told CNBC that the meeting "went very well", the companies issued statements, saying the meeting was productive and that they remain committed to delivering value for US consumers.

According to the National Retail Federation, the retail industry in the US is the country's largest private-sector employer, contributing $5.3 trillion to annual GDP and accounting for 55 million jobs.

China is a major supplier of goods for US retailers, shipping everything from electronics to toys sold by stores large and small. Last year, the US imported $438.9 billion worth of goods from China, up 2.8 percent from the previous year, according to data from the US Trade Representative.

The NRF has expressed concerns over how the tariffs could raise costs for US consumers.

"More tariffs equal more anxiety and uncertainty for American businesses and consumers," NRF Executive Vice-President of Government Relations David French said in a statement. "While leaders in Washington may not care about higher prices, hardworking American families do."

NRF Chief Economist Jack Kleinhenz said that consumers are not feeling great amid the confusing policy announcements made by Washington.

On-again, off-again tariffs and the resulting turmoil in the stock market are clearly impacting consumer concerns about higher prices and future spending growth, he added.

Thomas Fullerton, an economist and a professor at the University of Texas at El Paso, told China Daily that US consumers will face the biggest consequences from the tariff hikes.

Robin Xing, chief China economist at Morgan Stanley, said the tariffs have inflicted serious damage on the US economy, with companies now hesitant to invest and consumers facing higher prices. This has heightened the risk of a recession in the US, he said.

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