The United States overtook Japan in crude steel production in 2025 for the first time in 26 years, a milestone that pushed America into the No. 3 spot globally, behind only China and India, according to new industry data.
U.S. steelmakers produced 82.0 million tons of crude steel in 2025, a 3.1 percent increase from the prior year, figures released by the World Steel Association show. The gain marked the first time American production surpassed Japan’s since the late 1990s, a shift reported by Nikkei Asia and fueled by a combination of strong domestic demand and trade policy.
A significant driver of the rebound was construction tied to artificial intelligence data centers and power plants, along with tariffs imposed under President Donald Trump. In March 2025, the administration added a further 25 percent tariff on steel and aluminum imports, then raised that rate to 50 percent in June. As a result, steel imports fell sharply as a share of U.S. consumption, dropping from roughly 25 percent early in the year to 14 percent by November, according to Argus Media.
Domestic producers say the outlook remains strong. Nucor said demand in 2026 looks promising, led by data center construction, infrastructure projects, and work on fencing along the U.S.-Mexico border. The company plans to complete a new West Virginia sheet mill with capacity of 3 million short tons per year by the end of 2026, underscoring confidence in continued growth.
Japan, meanwhile, slipped to fourth place. The country produced 80.7 million tons of steel in 2025, a 4 percent decline from 2024, according to the World Steel Association. Japan once produced more than 100 million tons annually in the 1970s, but output has trended lower in recent years. Analysts cited a shrinking population and structural shifts in Japanese industry as key reasons for the downturn.
At the top of the global rankings, China remained the world’s largest steel producer despite a year-over-year decline. China produced 960.8 million tons in 2025, down 4.4 percent from the previous year, but still accounted for more than half of global production. Worldwide crude steel output totaled 1,849.4 million tons, the association reported.
India held second place with 164.9 million tons in 2025, far behind China but well ahead of other producers. India’s continued expansion highlights a broader shift in global steelmaking, even as U.S. output gains reflect renewed domestic investment.
The U.S. surge underscores how policy and demand can reshape industrial rankings. With imports reduced, capacity expanding, and large-scale construction underway, American steelmakers translated trade enforcement and market needs into measurable gains. For the first time in a generation, the numbers show the U.S. reclaiming ground long ceded to overseas producers, a development industry leaders say could carry into the years ahead.
