US set for trade war with Japan

TALKS between the US and Japan on car and car parts trade ended in failure on Friday, making it likely that America will impose punitive sanctions against Japanese imports.

"Despite much hard work and our efforts to look for creative solutions, we have been unable to reach an agreement," the US trade representative Mickey Kantor said after a meeting in British Columbia with Japan's minister of international trade and industry, Ryutaro Hashimoto.