Japan's economy got a little smaller from January to March. This happened because selling goods to other countries was harder, and people were not sure about spending money.

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 gone down.

Selling things to other countries went down a little bit, about 2%. People buying things stayed the same. Companies spending money grew 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 make a plan because Trump changes his mind a lot.

S&P said that car companies in some areas may have to pay more and earn less. This is because they make cars in different places, and it costs more to get parts.

It said that even small companies that sell a little in the U.S. may feel some effects because tariffs can change the world economy and what people want to buy.

Japan's economy has had problems for a long time because not many people want to buy things, and there are fewer young people.

The Bank of Japan had very low interest rates. Now, they are slowly making them a bit higher. This is because people are earning money and things cost a little more.

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

Some people think the 10% tax should be lower. This tax is like the sales tax in other countries. Lowering it may help people who have problems.

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

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