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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 Land Rover mulling factory in Georgia?

London's Sunday Times reported last October that Jaguar-Land Rover was sniffing around The South looking for a potential manufacturing site, and was "talking to several southern states." We imagine Georgia was one of them; The Peach State has Kia Motors Manufacturing in West Point, it claims Porsche HQ as a resident, and soon the Mercedes-Benz regional office, too. The Atlanta Journal-Constitution has said that Governor Nathan Deal recently took the initiative to fly to the UK to "make prospect calls" with JLR executives about a deal. We don't have any details about the calls, but we'll guess that they involved Deal making a financial case for GA over other states while sipping a cup of tea. It's said that the English luxury maker wants to build a factory here with a 200,000-unit capacity, to take advantage of the same financial efficiencies that have planted other automakers in the US and Mexico; it opened a facility in China last year to build the Range Rover Evoque, Land Rover Discovery Sport, and the Jaguar XE, and is casting eyes over Brazilian and Saudi Arabian soil for other facilities. No timetable has been given for a decision. Related Video: News Source: Atlanta Journal-Constitution via Automotive News - sub. req.Image Credit: AP Photo/Tony Ding Government/Legal Plants/Manufacturing Jaguar Land Rover Luxury

Jaguar F-Pace, XE getting SVR treatment with supercharged V8

The folks at Jaguar Land Rover's new Special Vehicle Operations division have been fast at work creating new SVR performance models. And they're not about to stop now. Two new Jaguar models are currently in the works, according to Car and Driver, both packing the company's long-serving and celebrated supercharged V8. First up is the F-Pace crossover, which currently tops out with a 380-horsepower supercharged V6. Slotting the bigger engine in under the hood with more than 500 horsepower on tap would go a long way toward living up to the name that suggests both speed and a correlation to the F-Type sportscar. But that's not all JLR's new skunkworks department has in store. Car and Driver reports work is also under way on a more powerful XE to take on the likes of the BMW M3 and Mercedes-Benz AMG C63. The automaker is reportedly yet to give it the green light, hemming and hawing over its environmental image, but we hope hotter heads, in this case, prevail. Jaguar's V8 engine is one of its most enduring powertrains and is approaching double the output it originally offered. The 4.0 introduced in 1997 packed 375 horsepower. The latest version in the F-Type SVR (and expected soon to slot into the Range Rover Sport SVR) displaces 5.0 liters and produces 575 supercharged horsepower. With that much muscle, the F-Pace SVR would overpower the Porsche Cayenne Turbo S, BMW X5 M, and Mercedes-AMG GLE63, while the XE SVR would outgun the M3, Cadillac ATS-V, Alfa Romeo Giulia QV, and just about anything else in its class. Related Video: