The United States overtook Japan in domestic crude steel production for the first time since 1999, a significant milestone in President Donald Trump’s plan to revitalize American manufacturing and strengthen domestic industry.
The U.S. produced 82.0 million tons of steel in 2025, up 3.1% from the previous year, according to the World Steel Association. America was the world’s third-largest steel producer behind China and India, surpassing Japan for the first time in 26 years.
Japan produced 80.7 million tons of steel in 2025, a 4% decrease from 2024. The Asian nation’s production levels was more than 100 million tons in the 1970s but have fallen in recent years due to a shrinking population, shifts in Japanese industry, and China’s rise.
The growth in U.S. steel demand was driven largely by demand for AI data center construction, power plant development, and border wall construction at the U.S.-Mexico border.
Trump imposed a 25% tariff on steel and aluminum imports in March 2025 and raised it to 50% in June. The tariffs had a swift impact on import levels and domestic market share for American steel companies, but also raised prices.
“Nucor said foreign imports fell from a share of about 25pc of US steel consumption in early 2025 to 16pc in October and 14pc in November,” Argus Media reported. “The company expects imports to remain at or below those levels in 2026 as the US steel industry continues to absorb the Section 232 tariffs that set steel imports at 50pc since June of 2025.”
Nucor, America’s largest steel producer, said 2026 appears promising on the demand side. The company intends to finish building a new West Virginia sheet mill by the end of the year.
“Nucor said demand in the infrastructure, data centers and energy development sectors looked promising to start 2026, alongside US-Mexico border fence construction ordered by President Donald Trump,” Argus Media reported.
The company entered 2026 with historic order backlogs, up nearly 40% annually from 2025 in the steel mill segment and up 15% in its steel products segment. Nucor expected earnings in the first quarter of 2026 to be up from the end of 2025 because of higher volumes and realized prices.
The surge in data center construction has become a major driver of steel demand as tech companies race to build AI infrastructure. Nucor CEO Leon Topalian described the data center opportunity as “white hot” during an October earnings call. The company forecasts data center construction will surge by 30% year over year to 60 million square feet in 2026.
“We now supply over 95% of all steel products that go into a data center from the building envelope to the interior infrastructure,” Topalian said.
🚨 JUST IN: In a devastating blow to the "experts," US steel production now EXCEEDS JAPAN for the first time in nearly 30 YEARS as a result of President Trump's tariffs
US is now third globally to China and India
THIS IS HUGE!
We love Japan, but USA must be number 1! 🇺🇸🇺🇸 pic.twitter.com/L3HnbAaz8e
— Eric Daugherty (@EricLDaugh) January 28, 2026