US President Bill Clinton and Japanese Prime Minister Morihiro Hosokawa are under pressure from their administrations to take steps which could escalate into a costly trade war.
In Washington, officials are urging the speedy imposition of sanctions on Japan to force it to open its markets more quickly.
And in Tokyo, bureaucrats are saying Japan must retaliate if the US takes any such action.
Other major nations and world economic institutions, such as the General Agreement on Tariffs and Trade (GATT), have been slow to react to the gathering crisis as the world's two largest economies prepare to slug it out.
But the indications are that Mr Clinton and Mr Hosokawa, after their cordial breakfast on Saturday following the summit breakdown, will both be inclined to try to slow the momentum towards trade conflict.
Two steps are immediately contemplated on the US side, according to sources contacted by the South China Morning Post. Mr Clinton is expected to issue an executive order re-establishinghis authority to act under the so-called Super-301 provisions of US trade laws.