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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.

Rolls-Royce's next bespoke project is a Dawn-based two-seater roadster

After the Sweptail, a customer-commissioned one-off coupe unveiled in 2017 and priced at $13 million, Rolls-Royce is transforming the Dawn into a two-seater roadster inspired by some of the opulent cars it made during the 1920s. The BMW-owned company released a quartet of early design sketches to preview the model. It's visibly based on the Dawn, which is a topless evolution of the Wraith, but it gains a tonneau cover that Rolls-Royce refers to as an Aero Cowling. Dark trim on both ends and a model-specific shade of silver add a finishing touch to the look. Although the interior images reveal little, Rolls-Royce noted every Silver Bullet will feature an open-pore carbon fiber insert and a quilted transmission tunnel whose design is inspired by leather jackets. All told, the company promised its next limited-edition car will "meld the nostalgia of the past with the sophisticated innovation of the future." Needless to say the Silver Bullet will be made almost entirely by hand in Goodwood, England. The firm made no mention of mechanical modifications. Power will likely come from the Dawn's 6.6-liter V12, which is twin-turbocharged to 563 horsepower and 605 pound-feet of torque in its standard configuration. We expect the Silver Bullet will benefit from the 593-horsepower, 620-pound-feet evolution of the V12 found in the Black Badge model, because the extra power would suit the model's touring pretensions rather well. Just 50 units of the Dawn Silver Bullet will be available worldwide. Pricing hasn't been announced yet, but keep in mind the standard model carries a base price of approximately $350,000. The company will encourage owners not to stash their roadster in a heated garage as an investment by organizing road trips they can participate in. Related Video:    

Rolls-Royce Arcadia Droptail unveiled as the third in a four-car series

If you're wealthy, you buy a new Rolls-Royce. If you're extremely wealthy, you work directly with the brand to design a one-of-a-kind car from the ground up. The firm has revealed its latest one-off, a convertible named Arcadia Droptail, and detailed the long development process. Built for an anonymous client in Singapore, the Arcadia Droptail borrows the first part of its name from a place known as "heaven on Earth" in Greek mythology. Rolls-Royce explains that the design perfectly reflects the customer's tastes and personality, including a passion for architecture and a subtle, restrained take on the concept of luxury. This likely explains why there's not much in the way of bright trim on the outside; instead, the Arcadia Droptail is characterized by a soft and almost organic design while remaining recognizable as a Rolls-Royce. Working directly with the customer, the brand put a great deal of thought into picking a color: the shade of white chosen is infused with aluminum and glass particles for a pearl-like effect that adds depth. These details help the Arcadia stand out from the two existing Droptail models unveiled in 2023. The overall design remains largely unchanged with an upright grille, thin rear lights, and a rounded back end. Santos Straight Grain wood trim dominates the interior and creates another link between cars and boats. Rolls-Royce explains that this was one of the most challenging parts of the project: Santos Straight Grain is difficult to work with, and the client plans to use the car all around the world so the trim needs to withstand wildly different temperatures and humidity levels. The brand initially considered applying the type of coating used in yachts but ruled it out because it needs to be re-applied on a regular basis. Instead, it went through the trouble of developing a specific lacquer that lasts for the life of the car. It adds that this part of the build required over 8,000 hours of work, including testing. The clock embedded into the dashboard was created in-house as well; it took over two years to develop and five months to make. Referred to as "the most complex Rolls-Royce clock face ever created," it features a guilloche pattern with 119 facets and hand-polished parts. Rolls-Royce hasn't published technical specifications. We're guessing that power comes from a V12 engine. All told, designing the Arcadia Droptail took over four years. There's no word on how much the project cost.