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| US tariff policy japan steel |
Trade Barriers Impact Japan’s Steel Exports
US tariff measures continue to restrict Japanese steel exports, significantly affecting the Japanese steel industry.
As a result, Nippon Steel and other producers face declining overseas orders and heightened market uncertainty.
Japan increasingly participates in trade events targeting China, seeking new export opportunities amid regional competition.
Meanwhile, Japanese steelmakers are pressured to adapt to shifting global trade flows and policy changes.
METI forecasts steel demand in January-March 2026 at 18.6 million tons, slightly up 0.1% from the previous quarter.
However, domestic demand remains constrained by labor shortages, rising construction material prices, and slow industrial recovery.
Domestic Market and Industry Outlook
The Japan Iron and Steel Federation anticipates minimal recovery in civil construction despite increased public works funding.
In contrast, automotive sector steel demand is expected to decline, limiting overall domestic consumption.
US tariffs and China’s export campaigns further suppress the Japanese steel market, creating indirect effects on regional supply chains.
Therefore, producers must consider investment in clean energy and regional growth initiatives, including the government’s $1.34 billion support plan.
Japan’s steel production is projected at 20.05 million tons for the last quarter of FY2025/26, down 1.7% year-on-year.
As a result, steelmakers may accelerate efficiency measures, cost reduction programs, and explore new markets to mitigate trade barriers.
ScrapInsight Commentary
US tariff policy and China’s export strategy weigh heavily on Japanese steel exports.
Domestic recovery remains constrained by labor shortages and rising material costs, limiting overall demand growth.
Producers may increase efficiency and diversify markets while leveraging clean energy incentives to sustain competitiveness.
