U.S. Draws Up Hit List of Japanese Goods

The Clinton Administration, turning up the pressure on Japan, today will announce a list of Japanese products that will be hit with punitive tariffs unless agreement is reached in a bitter trade fight involving automobiles.

U.S. Trade Representative Mickey Kantor scheduled a morning news conference to unveil the list of proposed sanctions.

Congressional and industry sources say they expect the list to cover about $6 billion worth of products, focusing on luxury cars.

Cars costing more than $30,000, including most Acura, Lexus and Infiniti models, could be hit with tariffs ranging as high as 100%, the sources said. Imported passenger cars now carry a 2.5% tariff at the border.

Kantor’s announcement would start the clock ticking on a 30-day comment period. The sanctions would not take effect until after that period, giving both countries a chance to resolve the dispute.

The deadline would not expire until after President Clinton and Japanese Prime Minister Tomiichi Murayama meet at the annual economic summit of the world’s seven richest industrial countries, to be held June 15-17 in Halifax, Nova Scotia.

Presidential spokesman Mike McCurry acknowledged Monday that the Halifax summit played a role in the timing of the proposed sanctions. In the past, the United States has successfully used the annual summits to force deals in protracted trade disputes with Japan.

While the United States has sought to isolate the current dispute from broader security issues in the Pacific region, McCurry warned that failure to resolve it could harm overall relations between the world’s two largest economies.

Referring to the sanctions list during his weekly radio address Saturday, Clinton said, “We are prepared to act, and we will act soon if we must.”