07:27 AM EDT, 09/04/2025 (MT Newswires) -- The United States and Japan are in the final stages of negotiations to implement lower US tariffs of 15% on Japanese cars from the current 27.5%, Reuters reported Thursday, citing a Japanese government source.

The new rate is expected to be implemented within 10-14 days after a US presidential executive order, which means it will take effect by the end of September although the exact date to be specified in the executive order remains under discussion and the final decision rests with President Donald Trump, according to the report.

Japan's top trade negotiator Ryosei Akazawa flew to Washington on Thursday to press the US to issue the executive order, the news outlet reported.

Trump announced a trade deal with Japan in July, reducing US tariffs to 15%. A joint statement outlining the July agreement and a memorandum clarifying rules for Japan's planned $550 billion US-bound investment package are expected to be issued alongside the executive order, Reuters said.

The White House and the Japanese government did not immediately respond to MT Newswires' request for comment.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)