U.S. THREATENS TRADE WAR

Trade Representative Mickey Kantor said the U.S. will double tariffs on 13 Japanese luxury carsif Japan does not open its markets to U.S. automakersby June 28.Japan denies that its markets are closedand says it will retaliate if the new tariffs, which total almost $6 billion, are imposed.TIME Detroit bureau chief William McWhirtersays that damaging as a trade war would be, anything could happen. "Clearly this is an endgame push. The bluff has to be frightening to be taken seriously." McWhirter notes U.S. automakers have the support of many in the business community who "feel that this is thetime to make a standagainst this kind of protectionism. They don't want to encourage these emerging markets in Asia to follow an example of exporting a huge amount and importing almost nothing."