Japanese Steelmakers Face Uncertainty after Trump Tariffs
Tokyo, March 12 (Jiji Press)--Japan's steel industry is facing growing uncertainty following the latest tariffs imposed by U.S. President Donald Trump's administration.
On Wednesday, Trump imposed additional 25 pct tariffs on imported steel and aluminum, including Japanese products.
While Japanese steelmakers do not expect a significant impact, they may suffer a blow if the high tariffs are expanded to automobiles.
According to the Japan Iron and Steel Federation, the amount of steel exported to the United States from Japan in 2024 was a mere 1.2 million tons.
Masashi Terahata, executive vice president of JFE Holdings Inc., said that the latest tariffs will have "very little direct impact" on the company.
Japanese steel exports to the United States mainly consist of seamless pipes for oil drilling and steels for railway tracks.
The items are mostly high-end products that are difficult to manufacture in the United States.
"U.S. companies may have no choice but to buy (such products from Japan), even with the high tariffs," a Japanese industry official said.
The industry's biggest concern is possible tariffs targeting the automobile industry, which uses a large amount of steel.
If Trump decides to impose tariffs on automobiles, which make up 30 pct of Japan's overall exports to the United States, the negative impact on steelmakers would be enormous.
"Depending on how (auto) production will fare, we'll see all kinds of impact," Terahata warned.
Masakazu Tokura, chairman of the Japan Business Federation, or Keidanren, also expressed his concern about possible auto tariffs at a press conference Wednesday.
"If fresh tariffs of nearly 25 pct are imposed, we'll definitely take a hit," the boss of Japan's biggest business lobby said.
Meanwhile, Tadashi Imai, JISF chairman and president of Nippon Steel Corp., is concerned about a possible collapse of the international trade order.
"If moves of protectionism spread further, this may further spur (steel) market stagnation caused by excessive Chinese exports," he said.
At a meeting with U.S. government officials in Washington on Monday, Japanese trade minister Yoji Muto was unsuccessful in getting his country exempted from the 25 pct tariffs.
As Tokyo wants to avoid automobile tariffs at all costs, it plans to continue talks to win tariff exemption for vehicles.
At a press conference in Tokyo on Wednesday, Chief Cabinet Secretary Yoshimasa Hayashi said, "The (steel and aluminum) tariffs put into effect without excluding Japan are regrettable."
"Our country's high-quality products cannot be easily replaced with other items," Hayashi said, adding that the Japanese steel industry is not only contributing to U.S. industry but also to the country's employment.
On Japan's next moves, the top government spokesman said that the two countries will "be in close communication" to discuss the matter. He did not say whether Tokyo will introduce retaliatory tariffs.
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