India, Feb. 2 -- US President Donald Trump announced on Monday that the United States and India have agreed to a new trade deal following a phone call with Indian Prime Minister Narendra Modi.

As part of the agreement, the United States will reduce its reciprocal tariff on Indian imports from 25% to 18%, effective immediately.

"Out of friendship and respect for Prime Minister Modi and, as per his request, effective immediately, we agreed to a Trade Deal between the United States and India, whereby the United States will charge a reduced Reciprocal Tariff, lowering it from 25% to 18%," his post read.

In his announcement, Trump also said that India has agreed to halt purchases of Russian oil and instead increase energy imports from the U...