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

Japan's economy got a little smaller from January to March. It went down by 0.2%. This is the first time it has gone down in one year.

Sales to other countries went down a little, about 2%. 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 things sold from Japan, but also from other countries like Mexico and Canada. People in charge know it is hard to make a plan because Trump changes what he wants to do.

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 many places.

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

Japan's economy is not doing well. Fewer people want to buy things because there are more old people and fewer young people. Also, many people are single and don't have 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 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 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 it yet. Japan has money problems because things like care for older people cost a lot.

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