Major Japanese steelmakers, including Nippon Steel and JFE Steel, foresaw cutting crude steel output by around 1 million tons each in the current fiscal year. This reduction was largely attributed to concerns that the US' blanket 25% tariff on automobile imports will impact domestic car production, a main steel consumer.

JFE Steel estimated a potential loss of several hundred thousand tons in steel product sales, as 20% of Japan's car production is exported to the US. Nippon Steel also forecasted lower steel demand due to possible reduced auto and machinery exports to the US.

Both companies cited uncertainty surrounding ongoing US-Japan trade negotiations as a factor influencing their projections. Domestic steel demand is also expected to remain weak.