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The U.S. and Japan are poised at the brink ofwhat could be a devastating trade warafter U.S. Trade Representative Mickey Kantor and his Japanese counterpart Ryutaro Hashimoto failed to reach a compromise today. Talks will continue Wednesday;the sanctions take effect at midnight.TIME contributor Cindy Shiner reports from Geneva: "At this point it doesn't look good. There doesn't appear to be any movement by the Japanese on opening the auto parts market, which is the main sticking point of the negotiations." In Portland, President Clinton repeated his vow to impose punitive tariffs that could total $5.9 billion a year on Japanese luxury cars if the Japanese don't yield. "I am not trying to launch a new era of protectionism," Clinton said. "The bottom line is that Japan must open its markets."