WASHINGTON -- Japan and the United States failed Thursday to narrow their disagreements on the issue of planned U.S. steel import tariffs, raising the possibility of Japan taking the case to the World Trade Organization.

At bilateral talks in Washington, Japan told the U.S. that if the tariffs are imposed, it will reserve all the rights permitted under WTO rules, including retaliatory action, Japanese officials told reporters after the meeting.

The measures being considered by Japan include seeking dispute-settlement procedures and compensation for damage caused by the U.S. measures, they said.