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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.

Wacky Jaguar crossover mule is a mind-blowing mashup

As Jaguar prepares to introduce its first-ever utility vehicle, our spy shooters have captured this jacked-up XF mule out testing. While a production Jaguar crossover will surely resemble something closer to the recent C-X17 Concept, we can't help but think that the automaker could sell at least a few of these lifted, four-wheel-drive sedans.
Other than proving that Jaguar is hard at work developing this new model using a cobbled-together body, there are some details we can put together about this luxury CUV. For one it's about the same length as an XF, while the ride height is obviously taller and the tire track wider. We're not sure what the rig on top of this mule is for, but the whole car has us reminiscing about the old sedan versions of the Subaru Outback and the AMC Eagle (with a luxury spin, of course).

Jaguar gets to work on next-gen XF sedan

With the XE now out in the open, Jaguar can begin to focus on what comes next. That means a new crossover, but also replacements for some of its aging current models - chief among them, the XF. Introduced back in 2007, Jaguar's mid-range sedan is growing a little long in the tooth. But from these latest spy shots, we can see that the British automaker is hard at work developing its successor.
Expected to be based on the same iQ A1 platform that underpins the new XE, the new XF promises to be lighter in weight and more advanced than the model it replaces. Look for most of the same engines to carry over, including gasoline and diesel options ranging from four cylinders to eight, with and without forced induction, with a potential plug-in hybrid version to follow. The current model is available in rear- and all-wheel-drive configurations and in sedan and wagon body styles, and we'd expect its replacement to follow suit.
The low-profile wheels and dual exhaust pipes on one of the prototypes spotted suggests it would lie somewhere near the top of the range, while the second prototype packs taller sidewalls and a trailer hitch. It's hard to discern much esle from the spy shots, heavily camouflaged as they are, but as with the technology underneath, we'd expect styling to takes some cues from the smaller XE as well. Jaguar will, of course, need to tread the line between distinctive and understated if it's going to fend off the Maserati Ghibli and take a bigger slice of the pie away from the likes of the Audi A6, BMW 5 Series and Mercedes-Benz E-Class, the Lexus GS and Infiniti Q70, the Cadillac CTS and the upcoming new Volvo S90.