Trump's decision to slap a 25% levy on auto imports, and a reciprocal 24% tariff on other Japanese goods, is expected to deal a huge blow to Japan's export-heavy economy with analysts predicting the higher duties could knock up to 0.8% off economic growth.

Japan on Monday sought to pull together a wide-ranging deal to negotiate with Washington on US tariffs, as the Asian nation’s stocks plummeted further amid fears of a widening trade war.