A post-Brexit trade agreement between the UK and Japan is reported to come into force in 2026.
Japan is pushing for the current tariffs to be lifted earlier, according to the Nikkei Asian Review, and Japanese Foreign Minister Toshimitsu Motegi is currently negotiating the deal with UK Trade Secretary Liz Truss.
In a statement, Truss said they "have reached consensus on the key elements of a deal" and that a principal deal will be agreed by the end of the month.
However, the agreement covers all types of trade and tariffs on vehicles and agricultural products have proven to be a hurdle in the negotiations.
"Japan has agreed to phase out car tariffs on Japanese vehicles in 2026 in line with the EU trade agreement, despite asking for the timing to be accelerated," Nikkei said.
The deal proposed by the UK is based on the EU-Japan deal of 2019 and it is hoped that the deal will be fully concluded by the end of the year after the UK's transitional deal with the EU expires.