TIME RUNNING OUT IN US-JAPAN TRADE WAR

The first day of renewed trade talks between the U.S. and Japan broke off without any new developments. The Geneva talks are scheduled to end tomorrow, but could continue into next week in an effort to hammer out an agreement beforescheduled U.S. sanctions against Japanese luxury import cars are implemented next Wednesday.Both sides are refusing to budge from their positions. TIME reporter Bernard Baumohl reports: "All the forces are in play for a genuine trade war." But Baumohl expects some sort of concessions from Japan: "This is a fight the Japanese think they're going to lose." The U.S. needs to make a strong stand here, says Baumohl. "This is not just aimed at Japan but at all the emerging closed Asian markets. The U.S. feels that if it opens the Japanese market now, the others will fall into place."