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:

Japan recorded a decline in exports in April, as shipments to the US dipped amid the fallout from President Trump’s tariffs, posing a fresh challenge to an already fragile recovery in the world’s fourth-largest economy.