The national flags of Japan and the United States are seen in this file photo. (Mainichi)
TOKYO (Kyodo) — The head of a major Japanese steel industry body said Monday that U.S. President Donald Trump’s tariffs plan could reduce Japan’s annual crude steel production to the lowest level in more than half a century by denting demand for autos and steel products.
Tadashi Imai, chairman of the Japan Iron and Steel Federation, told a press conference that the country’s crude steel output could fall below 80 million tons a year after the Trump administration’s tariffs on steel imports remain in place and are extended to autos among other items.
The output drop would be the lowest volume since the year ended March 1969, according to an official at the federation.
The crude steel production totaled around 84 million tons in 2024.
Higher tariffs “are a very serious problem,” said Imai, who is also the president of Nippon Steel Corp.
The United States placed 25 percent tariffs on all steel and aluminum imports on March 12, including those from Japan. Trump is also planning to strengthen levies on auto imports.
The chairman said a drop in demand for steel products from the higher import taxes could force Japanese steelmakers to trim production capacity at home.
Nippon Steel is continuing talks with the U.S. government on its planned acquisition of United States Steel Corp., Imai told reporters after the press conference.
The Japanese steelmaker recently filed a lawsuit against the U.S. government after it blocked the proposed merger on national security grounds.
“The deal contributes to strengthening the U.S. steel industry, or the manufacturing industry, through investment. We are beginning to share the same view,” Imai said of the talks with the U.S. government.
AloJapan.com