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Imported pickup tax in play in Trump trade talks with South Korea

WASHINGTON/SEOUL - Talks starting Friday to amend a U.S.-South Korean trade deal must balance President Donald Trump's domestic agenda against the need to contain a nuclear armed North Korea and will have to be completed swiftly, officials from both sides told Reuters. The U.S goods trade deficit with South Korea has doubled since the 2012 signing of the US-Korea Free Trade Agreement (KORUS). Almost 90 percent of the 2016 shortfall of $27.6 billion came from the auto sector, an issue the United States is expected to press hard in the Washington talks. A quick deal could give Trump his first trade victory at a time when NAFTA negotiations are dragging on without agreement and pressure on China to change trade practices has yielded little progress. The talks, led by Assistant U.S. Trade Representative Michael Beeman and Yoo Myung-hee, director general for FTA negotiations at South Korea's trade ministry, begin at a time of heightened tensions with Pyongyang. A trade ministry official in Seoul said South Korea was waiting for Washington's formal proposals and substantial negotiations would not take place on Friday over a deal Trump has repeatedly threatened to scrap. "The U.S. brought up lowering non-tariff barriers, especially for their auto industry. At the moment, we are not sure whether the U.S. will ask that but we will be prepared (for the U.S. demand)," said the official, who spoke on condition of anonymity as he was not authorized to talk to the press. A top priority for the Americans is maintaining a 25 percent tariff on Korean pickup truck imports, which was meant to have been phased out from 2019 under the current deal, according to a U.S. official and a South Korean car industry source. South Korea has two major automakers, Hyundai and Kia, both of which are heavily reliant on exports due to the small size of their domestic market. Critics charge that South Korea discriminates against imports with a range of non-tariff barriers. South Korean auto companies believe that Washington will also seek to increase the 25,000-vehicle per U.S. automaker threshold for U.S. car shipments to South Korea that can enter the country without meeting Seoul's domestic industry regulations. The official at a South Korea auto company, who was not authorized to speak to the media, also said the United States was interested in easing Seoul's vehicle emissions targets. These are viewed as discriminating against U.S. autos.

Consumer Reports no longer recommends Honda Civic

Consumer Reports annual Car Reliability Survey is out, and yes, there are some big surprises. First and foremost? The venerable publication no longer recommends the Honda Civic. In fact, aside from the walking-dead CR-Z and limited-release Clarity fuel-cell car, the Civic is the only Honda to miss out on CR's prestigious nod. At the opposite end there's a surprise as well – Toyota and Lexus remain the most reliable brands on the market, but Buick cracked the top three. That's up from seventh last year, and the first time for an American brand to stand on the Consumer Reports podium. Mazda's entire lineup earned Recommended checks as well. Consumer Reports dinged the Civic for its "infuriating" touch-screen radio, lack of driver lumbar adjustability, the limited selection of cars on dealer lots fitted with Honda's popular Sensing system, and the company's decision to offer LaneWatch instead of a full-tilt blind-spot monitoring system. Its score? A lowly 58. The Civic isn't the only surprise drop from CR's Recommended ranks. The Audi A3, Ford F-150, Subaru WRX/STI, and Volkswagen Jetta, GTI, and Passat all lost the Consumer Reports' checkmark. On the flipside, a number of popular vehicles graduated to the Recommended ranks, including the BMW X5, Chevrolet Camaro, Corvette, and Cruze, Hyundai Santa Fe, Porsche Macan, and Tesla Model S. Perhaps the biggest surprise is the hilariously recall-prone Ford Escape getting a Recommended check – considering the popularity of Ford's small crossover, this is likely a coup for the brand, as it puts the Escape on a level playing field with the Recommended Toyota RAV4, Honda CR-V, and Nissan Rogue. While Ford is probably happy to see CR promote the Escape, the list wasn't as kind for every brand. For example, of the entire Fiat Chrysler Automobiles catalog, the ancient Chrysler 300 was the only car to score a check – there wasn't a single Dodge, Fiat, Jeep, Maserati, or Ram on the list. That hurts. FCA isn't alone at the low end, either. GMC, Jaguar Land Rover, Mini, and Mitsubishi don't have a vehicle on CR's list between them, while brands like Mercedes-Benz, Volvo, Nissan, Lincoln, Infiniti, and Cadillac only have a few models each. You can check out Consumer Reports entire reliability roundup, even without a subscription, here.

Kia finally unveils the all-new Stonic compact crossover

About a week after the global debut of the all-new Hyundai Kona compact crossover, sister company Kia rolls out its own B-segment fighter, the stylish Stonic. The two new models are going up against crossovers like the Honda HR-V, Toyota C-HR, Mazda CX-3, Nissan Juke, and Fiat 500X. This is a segment that's big on both style and practicality, and at first glance the Stonic fits both bills. We'll have to wait until this fall to get our hands on it. The Stonic is a handsome car, but its design isn't as bold as something like the Kona or the C-HR. The fascia looks like an updated version of the Kia Soul rather than a shrunken Sportage. The big rectangular eyes flank the corporate tiger nose grille, with a large lower air dam that hides the hardware for the active safety equipment. The profile once again eschews any ties to the Sportage, with hard character lines and a new C-pillar design. There is plastic cladding around the wheel wells and along the rocker panel. Like the Kona, the Stonic is available with a two-tone roof, but rather than being locked into a single color, the Stonic will offer five. That means there's a total of 20 paint combinations. Unlike the rest of the car, the rear of the Stonic pulls from other Kia SUVs. The taillights feature U-shaped LEDs, though there isn't a bod-width reflector like on the Sportage. There's a decent-sized rear spoiler and a faux skid plate on the bottom of the bumper. The hatch doesn't have a flat bottom, so we're curious if this will narrow the opening to the cargo area. The interior carries over the corporate design, with large, easy-to-reach buttons and knobs and large, clear gauges. There are body-colored accents on the dash, the console, and even the stitching on the seats. It's a simple way to brighten a dark cabin. The Stonic will get Apple CarPlay and Android Auto and will be available with heated front seats and keyless entry and ignition. All we have right now are details for the European model, so it's unclear what engines will make it to the US. Look for both the 147-horsepower 2.0-liter four-cylinder and the 175-horsepower turbocharged 1.6-liter four-cylinder to make an appearance. Both engines can be found in the Kona, paired to a six-speed automatic and a seven-speed dual-clutch transmission, respectively.