Ten days before a U.S.-imposed deadline for reaching a trade pact with Tokyo, Japanese companies seem ready for a fight. The two countries are negotiating to come up with a plan to reduce America's trade deficit with Japan. But today the country's auto industry warned that if any trade sanctions are imposed, Japan will make it even harder for U.S. companies struggling to make inroads into the tough Japanese market. Meanwhile, in July the U.S. merchandise trade deficit surged to its second highest level in history: $11 billion. Yup, Japan accounted for the largest slice of that deficit pie.