Japan’s economy has hit a rough patch. For the first time in a year, it shrank during the first three months of 2025. The drop was larger than most experts had predicted. According to government data,

Japan's government on Thursday downgraded its assessment on the global economy in the face of uncertainty over U.S. trade policy, signalling its alarm over the broadening fallout from President Donald Trump's tariffs.

Japan's exports to the U.S. dropped 1.8% in April from a year earlier, reflecting weaker demand for cars and machinery including chip-making machines. Read more: