A top U.S. trade official on Thursday turned up the heat in the steel dispute, saying a step toward retaliation taken by Japan could threaten a partial settlement to the issue.

Japan has been threatening to retaliate against so-called safeguard tariffs Washington imposed in March, and notified the World Trade Organization to that effect last week.

"I must tell you," Deputy U.S. Trade Representative Jon Huntsman told Kyodo News, "that the action that Japan has taken by providing notification to the (World Trade Organization) on unilateral retaliation . . . may color somewhat ultimate decisions that are made on further exclusions."

In response to three-year tariffs of up to 30 percent imposed by the United States on an array of steel imports, Japan notified the WTO on May 17 of its plan to slap 100 percent retaliatory tariffs on imports of U.S. steel products effective June 18.