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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.

Jaguar confirms XE reveal for September 8

Jaguar has a whole raft of new products in the pipeline, from the long-awaited replacement for the XF mid-size sedan and a likely XJ-based replacement for the XK coupe and convertible to the production version of its C-X17 crossover concept. But arguably the most important will be the all-new XE, a compact sports sedan pointed squarely at the BMW 3 Series - a market segment which Jaguar last nipped at with the regrettable X-Type, one which it is now committed to tackling head on.
The British automaker has been trickling out a steady stream of details on its upcoming XE, from the initial announcement in March to the reveal of the disguised prototype in May and most recently the details released just last week of the new Ingenium engine family that will provide its motivation. Now Jaguar has confirmed the XE reveal timeframe and some more salient details of its chassis.
Set to be unveiled in London on September 8, the XE will reach European showrooms in 2015 and our shores in 2016. That's when buyers will be able to get their hands on what Jaguar is already characterizing as "a true driver's car; one that redefines the concept of the sports sedan."

Jaguar could morph into an electric-only brand and explore new segments

Jaguar is set to morph into an electric-only brand whose products will be aimed directly at Tesla's and Polestar's, according to a recent report. Its future range will allegedly include alternatives to the Tesla Model 3 and the Polestar 2. Nick Rogers, the head of Jaguar-Land Rover's engineering department, told British magazine Auto Express that a small electric Jaguar "would be great." His definition of small is different than, say, Smart's; don't expect the company to release an alternative to the ForTwo, or something along the lines of a Renault Twizy. Instead, he's likely referring to a model positioned below the XE, which is currently the smallest Jaguar, in terms of size. If approved, the car will be about the same size as a BMW 1 Series, though it might sit a little bit taller. Adding a few inches of ground clearance would give engineers more space to stuff a battery pack under the floor, while allowing its marketing department to reach a wider audience by presenting the hatchback as a crossover. "We need to think about that. That's a really cool space that we ideally want to be in, and ideally our customers want us to be in. It's extremely relevant at this time," he said. This isn't the first time we've heard that Jaguar is starting to think small. In June 2020, we reported the company is considering replacing the aforementioned XE and the XF with a single compact model that would almost certainly be offered as a hatchback and as a sedan. Jaguar's transformation into an electric-only manufacturer is allegedly the brainchild of Thierry Bollore, who will take the firm's reins in September. He recently led Paris-based Renault, which is also allocating huge resources to electrification. We know the next-generation XJ (shown in spy shots taken far north of the Arctic Circle) will be offered with an electric powertrain (though internal combustion variants will be available, too), and Auto Express learned an XE-sized battery-powered model placed in the Model 3's segment is very likely, too. Finally, at least for now, an electric SUV tentatively called J-Pace will reportedly enter production in the coming years. It's too early to tell what the future holds for the E-Pace, the F-Pace, and the XF, though we wouldn't be surprised if the latter does not get a replacement. Where the F-Type would fit in an electric-only range hasn't been decided yet; sealing its fate one way or another will be one of Bollore's first tasks.