RECORD U.S. TRADE DEFICIT PRESSURES U.S.-JAPAN TALKS

The U.S. trade deficit soared in April to a new record $11.37 billion, driven in large part by a surge in auto imports from Japan as dealers rushed to import cars beforethe threatened June 28 tariffs. The new figures increase the pressure on U.S. Trade Representative Mickey Kantor to push for an opening of Japanese auto parts markets when talks resume tomorrow in Geneva. Although no one can tell if the talks will be successful in heading off the proposed U.S. sanctions against Japanese luxury cars, TIME's Adam Zagorin says "both sides will make significant efforts to try to get this worked out before we head over the cliff after June 28."