Japan's economy got a little smaller from January to March. This happened because selling things 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 because the country made and sold fewer things than before. It is the first time in a year that this has happened.

We sold less stuff to other countries, about 2% less per year. People spent the same amount of money as before. 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 places like Mexico and Canada. People in charge know it is hard to make a plan because Trump changes his mind a lot.

S&P Global said that car companies in some areas may have more costs and less money. This is because they make cars in different places and get parts from many suppliers in the U.S.

The report said that even small companies that sell little in the U.S. may be affected because tariffs can change the world economy and what people want to buy.

Japan's economy is not doing well. Many old people and fewer babies make it hard. People don't buy much.

The Bank of Japan had low interest rates for a long time. Now, they are slowly raising them because salaries and prices are going up.

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

Some people think the 10% tax should be lower. This tax is like a sales tax. It could help people who are having problems.

But the Prime Minister has not said yes yet. Japan does not have much money because it spends a lot on helping people.

The economy got bigger by 2.4% last year.