Japan's economy got smaller by 0.7% in the first three months of the year. This happened because selling goods to other countries became harder, and people were not sure about the future. The government said this on Friday.

Japan's economy got smaller by 0.2% from January to March. This is not good news. It is the first time in a year that the economy has shrunk.

We sold less stuff to other countries, about 2% less. People spent the same amount of money. Companies invested a bit more, about 6%.

Trump's taxes may be bad for big companies in Japan that sell things to other countries, like car companies. This is because of products from Japan, but also from Mexico and Canada. People in charge know it is hard to plan because Trump changes his mind a lot.

A report says that car companies in some areas may have more costs and less money. This is because they make cars in different places, and this can be hard.

It said that even small companies that sell a little in the U.S. may have problems because of tariffs, as these affect the world and what people want to buy.

Japan's economy is not doing well. Fewer people are buying things because there are fewer young people and more old people. Also, many people are not getting married or having babies.

The Bank of Japan had very low interest rates for a long time. Now, they are slowly making them a bit higher. This is because people are still getting paid, and prices are going up slowly.

The news says the economy is not strong. So, the bank may not raise rates.

Some people think the 10% tax should be smaller. This could help people who have problems with money.

But Shigeru Ishiba, the Prime Minister, has not said yes. Japan has money problems because things like helping older people cost a lot.

The economy got a little bigger last year. It grew 2.4%.