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SMA: The U.S. Rise as World’s No. 3 Producer Is a (Good) Sign of the Times
03/26/2026 - In 2025, the U.S. edged out Japan as the world’s third-largest steel producer. And as the Steel Manufacturers Association (SMA) sees it, the U.S. likely will pull even further ahead this year.
In 2025, the U.S. edged out Japan as the world’s third-largest steel producer. And as the Steel Manufacturers Association sees it, the U.S. likely will pull even further ahead this year.
In an interview with AIST Steel News, SMA president and chief executive officer Philip K. Bell said Japan’s slide to the No. 4 position appears to represent a secular market shift, as opposed to a temporary quirk in the annual production numbers.
Bell said Japan’s annual steel output has been in decline for more than 18 years, and at the same time, the U.S. is poised to bring on 13 million to 15 million tons of new capacity across all product categories.
And backed by strong trade policies, U.S. production grew 3.1% in 2025, reaching nearly 82 million metric tons. Meanwhile, Japan’s output fell 4% in 2025 to 80.7 million metric tons.
Considering these dynamics, Bell said he expects that the U.S. will hold the No. 3 position going forward.
“We think his is something that is probably going to be permanent,” he said.
Bell said U.S. trade policy is benefiting the steel industry. Imports are down, he said, and production is rising. In addition, U.S. producers are re-investing approximately US$25 million in new mills and mill upgrades.
Although trade policy is having its desired effect on the steel industry, more needs to be done, particularly with respect to the USMCA, he said.
“We need to realize that the USMCA needs to improve. Market conditions have changed, and trade policies have changed since its inception.”
Bell said circumvention through Mexico and Canada has been a problem, and to combat it, the three North American countries need to have consistent, harmonized policies to the greatest extent possible. He said Mexico and Canada are beginning to move in that direction, as Mexico is implementing a series of new trade policies while engaging in an ongoing dialog with the U.S. and as Canada has imposed a tariff-rate quota on steel mill products.
Bell said a mandated review of the USMCA, which is underway now, presents an opportunity for the USMCA partners to look at the rules of origin and melted and poured and requirements.
“The USMCA was successful, but we have to make it better,” Bell said.
In an interview with AIST Steel News, SMA president and chief executive officer Philip K. Bell said Japan’s slide to the No. 4 position appears to represent a secular market shift, as opposed to a temporary quirk in the annual production numbers.
Bell said Japan’s annual steel output has been in decline for more than 18 years, and at the same time, the U.S. is poised to bring on 13 million to 15 million tons of new capacity across all product categories.
And backed by strong trade policies, U.S. production grew 3.1% in 2025, reaching nearly 82 million metric tons. Meanwhile, Japan’s output fell 4% in 2025 to 80.7 million metric tons.
Considering these dynamics, Bell said he expects that the U.S. will hold the No. 3 position going forward.
“We think his is something that is probably going to be permanent,” he said.
Bell said U.S. trade policy is benefiting the steel industry. Imports are down, he said, and production is rising. In addition, U.S. producers are re-investing approximately US$25 million in new mills and mill upgrades.
Although trade policy is having its desired effect on the steel industry, more needs to be done, particularly with respect to the USMCA, he said.
“We need to realize that the USMCA needs to improve. Market conditions have changed, and trade policies have changed since its inception.”
Bell said circumvention through Mexico and Canada has been a problem, and to combat it, the three North American countries need to have consistent, harmonized policies to the greatest extent possible. He said Mexico and Canada are beginning to move in that direction, as Mexico is implementing a series of new trade policies while engaging in an ongoing dialog with the U.S. and as Canada has imposed a tariff-rate quota on steel mill products.
Bell said a mandated review of the USMCA, which is underway now, presents an opportunity for the USMCA partners to look at the rules of origin and melted and poured and requirements.
“The USMCA was successful, but we have to make it better,” Bell said.
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