U.S. President Donald Trump signed an executive order on Thursday lowering tariffs on Japanese cars to 15%, down from the current 27.5%, as part of a trade agreement between Washington and Tokyo.

According to AFP, the order also sets a ceiling of 15% on U.S. tariffs for several other Japanese goods. The new rates will take effect within seven days of publication in the U.S. Federal Register.

The move is expected to boost bilateral trade, particularly in the automotive sector — a cornerstone of Japan’s economy — while Trump’s administration seeks bilateral deals to reduce the U.S. trade deficit.