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U.S. issues new tariff threat, this time against British-built cars

WASHINGTON — Britain is the United States' closest ally but their long friendship may be sorely tested as the two countries try to forge a new trade agreement after Britain's exit from the European Union. U.S. Treasury Secretary Steven Mnuchin said on Saturday in London that he was optimistic that a bilateral deal with Britain could be reached as soon as this year. But Mnuchin gave up no ground after a second meeting with his UK counterpart, Sajid Javid. Javid has insisted that Britain will proceed with a unilateral digital services tax, despite a U.S. threat to levy retaliatory tariffs on British-made autos. Mnuchin told reporters after Saturday's meeting that such taxes would discriminate against big U.S. tech companies like Alphabet Inc's Google, Apple, Facebook and Amazon. The UK Treasury declined to comment on the private meeting. The divide highlights the challenges ahead as the Trump administration seeks a new bilateral agreement with Britain, part of a broader push to rebalance relations with nearly all its major trading partners. The stakes are high — British Prime Minister Boris Johnson has pegged the trade deal with United States as a way to ease the pain of breaking with Europe, Britain's largest trade partner. U.S. President Donald Trump, has promised a "massive" trade deal to support Brexit, the product of a populist movement similar to his "America First" agenda. The goodwill and special relationship the two countries have enjoyed for decades may not count for much, experts say. "Trump is not going to be doing Johnson any favors," said Amanda Sloat, a senior fellow with the Brookings Institution in Washington. "He's not going to give him a trade deal without major concessions." Even before the digital tax issue arose, the Trump administration threatened to tax foreign car imports, which could hit British-made Jaguar, Land Rover, Mini, and Honda Civic hatchback cars. Stiff U.S. trade demands include increased access for U.S. farm goods, concessions that will be difficult for Britain's entrenched natural food culture to swallow. The United States also wants Britain to change the way its National Health Service prices drugs and allow in more U.S. pharmaceuticals, which could prove politically unpopular for Johnson's government. Washington's demand that London block Chinese telecoms equipment maker Huawei Technologies Co Ltd for national security reasons could also cloud talks.

2017 Jaguar F-Type SVR First Drive

Jaguar's F-Type SVR has a special new exhaust. I drove the car in Monterey, California, where there's this tunnel right in the middle of town. You see where I'm going with this. The pipes attached to the "normal" F-Type R's supercharged 5.0-liter V8 is a flatulent riot, one of the most flamboyant wind sections in modern exhaust-dom. And then Jaguar's Special Vehicle Operations, the group of madmen responsible for the Project 7, comes along and rips it all out for the SVR. The room is needed for a rear diffuser, see. So a new system is fabbed using two fancy lightweight alloys, Inconel and titanium. A pair of mufflers sprout where one used to be. More. Better. Louder. Yes, all of that. Geez it's loud. And there's this tunnel, remember. Enter it and lift from the throttle, and it sounds as though there are some kids stowed away in the trunk tossing handfuls of M-80s out the back. "Big report" is what it'd say on the box if the F-Type SVR were a firework. It's dramatic, perhaps excessive. Scratch that – it's definitely excessive. This F-Type is only the second full-production effort from Jaguar Land Rover's SVO, the first being the Range Rover Sport SVR, and so it's also the first Jaguar SVR ever. Whereas that Range Rover combines quickness with surprising cross-country abilities, the F-Type SVR has a singular mission: Go faster. And so, with a tweak of the electronic limiter and some other fiddling, voila!, suddenly the coupe can reach a top speed of 200 mph. The convertible is not far behind at 195. Although there aren't many places in the world where you'll actually want to probe those max velocities, the engine's 575 horsepower and 516 pound-feet of torque are plenty to risk your license. The SVR adopts many of the engine improvements that hoisted the Project 7 to the same power level but bests that very special car's torque figure thanks mostly to new intercoolers. Remember, the regular F-Type R is only good for 550 hp. Only. What a world we live in. Aside from the added power, this is much more of a range-topping special trim than it is a significantly different model. Like the R, the SVR comes only with all-wheel drive and an eight-speed automatic transmission. Operating it in manual mode is more pleasant, in part because the paddle shifters behind the wheel are made out of aluminum instead of plastic like on other automatic F-Types.

Jaguar brings the new XKSS to Jay Leno's Garage

Jay Leno is no stranger to the Jaguar XKSS, having driven Steve McQueen's no less. But that doesn't mean he would turn down a chance at another one, and certainly not the continuation model seen in this week's Jay Leno's Garage. This particular XKSS is the first of nine cars built to complete the car's original 1957 production run, which was cut short in a factory fire. The video covers many of the fascinating details that went into recreating the XKSS. Among them are Jaguar's acquisition of an original D-Type engine block to make new castings, and even replicating the type of type of steering wheel used back in the day. Most of the vehicle is made to be identical to the originals, with only a few changes made for usability. This includes better quality materials for the brake lines, and ethanol-resistant materials for the fuel tank. Because this particular XKSS was on its way to the LA Auto Show (where we saw it debut at the Petersen Museum), Leno didn't get a chance to take it for a spin. However, snippets of his drive in McQueen's car were added, since it's the same car for all intents and purposes. What Leno emphasizes is how modern the car feels, also noting that it feels lighter than many other classic Jaguars. To see all the details and impressions, check out the video above. Related Video: