TOKYO—Japan’s economy shrank for the first time in a year and faces a bumpy road ahead due to the impact of U.S. trade policy.Japan’s real gross domestic product declined 0.2% in the January-March period from the previous quarter,

On an annualized basis, Japan's GDP contracted 0.7% in the first quarter, also more than the 0.2% fall expected by the Reuters poll.

The government has reported that Japan’s economy contracted at an annual rate of 0.7% in the first quarter, as U.S. President Donald Trump’s trade war hurt exports and dented consumer confidence