Economy, Trade and Industry Minister Shoichi Nakagawa repeated his demand Tuesday that the U.S. scrap the Byrd Amendment but expressed concern that Japan's retaliatory duties on U.S. steel products could spill over to the bilateral row over the ban on U.S. beef imports.

"I believe the countervailing tariff by itself would not affect bilateral ties. But when the issue is combined with the BSE row, I hope there will be no negative impact on relations," Nakagawa said at a news conference. BSE stands for bovine spongiform encephalopathy, the scientific term for mad cow disease.

He apparently fears U.S. retaliation against the imposition of Japan's countervailing duties by imposing economic sanctions over the failure to swiftly resume beef imports.