Japan's government warned of uncertainty over the impact of U.S. trade policies as tariffs could hurt the global economy but it also said in a monthly report on Friday that the domestic economy was recovering moderately thanks to a solid corporate sector.

Japan recorded a trade deficit in its March-April fiscal year but racked up a surplus with the U.S., the Finance Ministry reported Thursday. Japan’s global trade deficit totaled 5.2 trillion yen ($37 billion) for the fiscal year through March,