Japan has raised the issue of auto tariffs with the US after President Donald Trump threatened to impose a 25% levy on car imports, a move that would deliver a big blow to Japan’s economy.

The Japanese government on Wednesday stuck to its view that the economy was recovering moderately, but flagged U.S. trade policies as key factors to watch as President Donald Trump's proposals on tariffs cast uncertainty over the economic outlook.

The U.S. president says he plans to impose tariffs of 25% on automobile imports to the U.S., though he has not said which countries would be subject to them.