The move is the latest in a tit-for-tat between Washington and Moscow triggered by U.S. sanctions on Russia for its interference in the 2016 U.S. election.
One day after firing FBI Director James Comey, the president shakes hands with the Russian ambassador who's a key figure in the investigation into ousted national security adviser Michael Flynn.
"The world's two foremost nuclear powers cannot cannot have this kind of relationship," Secretary of State Rex Tillerson said after meeting with Russian President Vladimir Putin on Wednesday.
The agreement, announced by U.S. Secretary of State John Kerry and Russian Foreign Minister Sergey Lavrov, will be put into place beginning at sundown on Monday.