Tariffs will drop from 50% to 18% on Indian goods, while India has agreed to stop buying Russian oil.

US President Donald Trump has announced a cut in tariffs on Indian goods from 25 per cent to 18 per cent after speaking with Prime Minister Narendra Modi, signalling an easing of strained ties.

President Trump said the two leaders had agreed to the trade deal "effective immediately" whereby the United States will charge a reduced Reciprocal Tariff, lowering it from 25% to 18%.