Japan's economy went down 0.7% in the first three months of the year. This happened because selling goods to other countries was harder, and people were not sure about spending money. This is based on information from the government.

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 gotten smaller.

We sold less stuff to other countries, about 2% less this year. People spent the same amount of money as before, but businesses invested more, about 6% more.

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

S&P said that car companies in some areas may have to pay more and may not get as much money. This is because they make cars in different places and get parts from different places.

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. Fewer people are buying things because there are fewer young people and more old people. Many people are single and have fewer kids.

The Bank of Japan had very low interest rates for a long time. Now, they are slowly making them a bit higher. They see that people are still getting paid, and things are starting to cost a little more.

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

Some people think the 10% tax on things we buy should be lower. This could help people who have problems.

But Shigeru Ishiba, the Prime Minister, has not said yes to this yet. Japan has money problems because it costs a lot for old people.

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