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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.

Cargo ship carrying 1,200 Jaguars and Land Rovers deliberately run aground [w/video]

A cargo ship carrying a load of new cars out of Southampton has run aground in the English Channel in between England and the Isle of Wight. The vessel apparently suffered some sort of failure just 45 minutes after leaving port that caused it to list heavily to the starboard side before the crew deliberately beached it on Bramble Bank to prevent the ship from capsizing altogether. The vessel, called the Hoegh Osaka, is a 590-foot car carrier weighing some 57,000 tons and registered in Singapore. Although several automakers (including Honda and Bentley) were reportedly looking into whether they had cars on board, the vessel is said to have been filled to approximately one-third its capacity, with 1,400 vehicles on board – including 1,200 Jaguar and Land Rover vehicles, 65 Mini models and one Rolls-Royce Wraith. 70 to 80 pieces of construction equipment were also said to be on board. The Hoegh Osaka was en route from the southern British port of Southampton to Bremerhaven, Germany. Fortunately, no major injuries have been reported. The crew was mostly airlifted by helicopter off of the beached ship, with two crew members evacuated by lifeboat. One crew member reportedly jumped over 25 feet off the ship into the water before being immediately retrieved by rescue workers. According to the Daily Mail, two crew members were treated for non-life-threatening injuries, including a broken leg. It may take several days, if not longer, to extract the vessel from the sand bank and ascertain the damage to the ship and its cargo. An early attempt to free the ship with tugboats failed, meaning that the Maritime and Coastguard Agency may have to wait until more favorable high tides to try again before towing the ship back into the port. Bramble Bank, where the vessel was run aground, is a well-known obstacle to maritime navigators. The Queen Elizabeth 2 ran aground there in November 2008 with 1,700 passengers on board, but was quickly freed by four tugboats and was able to continue on its way. Two local yacht clubs also play a cricket match there every year at low tide. The vessel's operator, Hoegh Autoliners, praised the skill and quick thinking of the crew in acting to prevent the ship's capsizing by running her aground on the soft, sandy shoal. Watch the clip below for aerial footage of the beached ship, courtesy of the BBC. This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.

Jaguar laying groundwork for a reborn XK

There have been rumors about plans to replace the Jaguar XK since before the gentleman's coupe ended production in 2014. Depending on which rumor you read, a reborn XK could remain compact and offer a 3.0-liter turbodiesel, grow a bit and move upmarket to challenge the Mercedes S-Class Coupe, or grow even more and challenge the Bentley Continental GT as "an elegant four-seater coupe." About the only three consistent details have been that the new XK would ride on a reworked F-Type platform, that the XK would become Jaguar's new flagship, and brand design director Ian Callum providing all the quotes about a potential resurrection. Now Hanno Kirner, the head of product strategy at Jaguar Land Rover, has added quotes that could portend the return of the big two-door cat. Kirner told Autocar that Jaguar "will continue to invest in sports cars," and that "I use the plural quite deliberately." That is, the F-Type won't be left to carry the sports car mantle by itself. Questions remain about the definition of the term "sports car," and whether that really means a return of the XK. Kirner suggested it's possible that a future offering could be "a body variant" of the F-Type. Callum's been fighting for the XK's return ever since Jaguar made the decision to kill it. The designer said the two-seat F-Type wasn't intended to kill the bigger 2+2, and at one point his team had already finished design work on the third-generation XK. However, the F-Type sold so well that the company marketers decided the automaker didn't need both cars. A number of things needs to happen before any XK gets the green light, though. The next-gen F-Type is in the works and could come as soon as next year, and Jaguar will want to make sure the two-seater continues its run of steady sales. The XK spirit lives on in the current F-Type, since the F-Type sits on a reworked version of the XK's aluminum architecture, and the second-generation F-Type will evolve that aluminum platform again. It's said that the platform could morph back into a 2+2 without undue hassle, but any new XK wouldn't likely arrive before 2021 even if approved. Callum remains on the case, saying in October 2017, "I want a two-seater [the F-Type] and a 2+2. We're working on something now." Related Video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.