Pakistan, Feb. 3 -- The United States (US) and India have reached a new trade agreement that sharply reduces US tariffs on Indian goods in exchange for India halting purchases of Russian oil and lowering trade barriers, US President Donald Trump announced on Monday.

Trump said US tariffs on Indian imports would fall to 18 per cent from 50 per cent following a call with Indian Prime Minister Narendra Modi. A White House official told Reuters that Washington would rescind an additional punitive 25 per cent duty imposed over India's continued purchases of Russian oil, which had been layered on top of a 25 per cent "reciprocal" tariff.

Trump said India had agreed to stop buying Russian oil and would instead purchase energy from the United S...