Sources say Japan and the US are close to reaching an agreement to implement lower automobile tariffs.

A Japanese government source revealed to Reuters on Thursday that Japan and the United States are in the final stages of negotiations, planning to implement lower tariffs on Japanese cars exported to the U.S. within 10 to 14 days after the U.S. president signs an executive order.

The source stated that this means the U.S. tariff rate on Japanese cars will drop from the current 27.5% to 15%, and the new regulation is expected to take effect by the end of this month. As the matter has not yet been made public, the source requested anonymity.

The source pointed out that the specific effective date of the executive order is still under discussion, adding that the final decision will be made by U.S. President Donald Trump.

The U.S. Embassy in Japan has not yet responded to a request for comment, and the Japanese government has also declined to comment on the matter.

In July of this year, the United States had already agreed to lower tariffs on Japanese cars exported to the U.S., but since Trump has not yet signed the relevant executive order, the specific implementation time has remained unclear.

Japan's chief trade negotiator, Ryosei Akazawa, flew to Washington on Thursday to urge the U.S. to sign the executive order as soon as possible.

The source also revealed that the executive order is expected to include two additional provisions: first, the 15% tariff agreed upon in July will not be added to higher tariffs already applied to Japanese products exported to the U.S.; second, for products previously subject to tariffs lower than 15%, their rates will be adjusted to 15%.

According to the source, the Japanese and U.S. governments are working to include background information on the tariff agreement in the executive order, including Japan's plan to expand imports of U.S. rice and arrangements to purchase U.S.-made aircraft.

In addition, two documents are expected to be released simultaneously with the executive order: one is a joint statement outlining the contents of the July agreement, and the other is a memorandum specifying the rules related to Japan's planned $550 billion investment in the United States.

The source said that the $550 billion investment plan will be implemented in the form of equity, loans, and guarantees provided by Japanese state-owned banks, and that this plan is part of the trade agreement reached in July.

"Negotiations are now in the final stage," the source said. "After Minister Akazawa arrives in Washington, the goal is to push for the executive order to be signed as soon as possible. After that, we will begin formulating the implementation plan for the investment projects."