Japan's economy went down a little bit in the first three months of the year. This is because selling things to other countries was harder, and people were not sure about the future.

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.

Sales to other countries went down a little, about 2%. People spent the same amount of money as before. Companies invested more money, 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 things sent from Japan, but also from other countries like Mexico and Canada. People say it is hard to know what to do because Trump changes his mind a lot.

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

It 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 more old people and fewer children.

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 should be lower. This tax is like a sales tax. It could help people who have problems with money.

But Shigeru Ishiba, the Prime Minister, has not said yes yet. Japan has money problems because it spends a lot on people.

The economy got bigger by 2.4% last year.