U.S. Trade Representative Robert Zoellick responded coolly Tuesday to Japanese demands for compensation over U.S. steel import tariffs, meaning Japan may be closer to imposing unilateral retaliatory tariffs on U.S. imports.

In a 40-minute telephone conference with Minister of Economy, Trade and Industry Takeo Hiranuma, Zoellick said that it is difficult to give a clear answer on the compensation issue due to the "political context" in the U.S., according to METI officials.

After the U.S. imposed temporary tariffs on steel products March 20, Tokyo urged Washington to offer compensation in the form of reduced tariffs on other Japanese imports.