US President Donald Trump said China had agreed to remove non-tariff barriers to US imports as he announced a deescalation of his trade war with Beijing, suggesting even greater concessions could be in store if talks progress.

In an agreement announced Monday, both countries will roll back reciprocal tariffs to a 10% rate for a 90-day period beginning Wednesday. Other, sector-specific U.S. trade levies on steel, aluminum and automobiles will remain in place, as will a 20% tariff announced by President Donald Trump earlier this year to address fentanyl trafficking.

Hong Kong's benchmark Hang Seng Index closed 3% higher after both the U.S. and China chose to de-escalate a budding trade war.