The Shogun, Tokugawa Ieshige, handled the situation rather calmly. Damian showed him the steel ingot, the waygate, and explained what he wanted from them. It wasn't a threat but simply a declaration—he needed their iron. If they didn't give it willingly, he would have to resort to other methods.
The Shogun was shaken, as were all his retainers, just like the locals had been when Damian unleashed lightning unlike anything they had ever seen or heard of, right in front of their city. The Shogun asked Damian and Lucian to stay as guests for the night, promising to give them an answer in the morning after careful consideration. Damian thanked him for the offer but politely refused. He had other places to go.
From there, Damian went directly to India. Even though the country was largely under British influence, he still met with the Mughals and the Marathas, offering them the same deal as he had offered the others. They too asked for some time to decide.