AsianFin -- Japan and the United States are in the final stages of negotiations to implement lower tariffs on Japanese car imports, with a deal expected to take effect within 10–14 days after a U.S. presidential executive order, a Japanese government source told Reuters on Thursday.

Under the proposed plan, U.S. tariffs on Japanese automobiles would drop from the current 27.5% to 15%, potentially taking effect by the end of this month. The source, who requested anonymity due to the confidential nature of the discussions, said the exact date will be determined in the executive order, which ultimately requires approval from President Donald Trump.

The U.S. embassy in Tokyo did not immediately respond to a request for comment, and the Japanese government declined to comment.

The agreement follows a July decision in which the U.S. and Japan reached a preliminary understanding to reduce tariffs on Japanese car imports. However, the timing has remained uncertain pending Trump’s signature on the executive order.

On Thursday, Japan’s top trade negotiator, Ryosei Akazawa, traveled to Washington to press U.S. officials on issuing the executive order.

According to the source, the order is expected to include provisions ensuring that the 15% tariff would not be applied on top of higher existing tariffs for certain Japanese imports, while products previously subject to rates below 15% would be adjusted upward to 15%.

The move signals a potential easing of trade tensions between the two nations, which have been navigating disputes over automotive tariffs for months.