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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.

Even in a down economy, Rolls-Royce is on a roll

Limited Volume, Big Margins Spell Success
Bigger isn't always better, especially when it comes to selling super luxury. Rolls-Royce CEO Torsten Müller-Ötvös expects the British automaker to again post a record year, despite the economic troubles in Europe and weak growth in both the US and China.
"It is not all doom and gloom out there," Müller-Ötvös explains, noting that the declining sales in Europe and elsewhere have been offset by good performance for the marque in the Middle East, Japan, Singapore, Hong Kong and Russia.

Rolls-Royce just unveiled the Rolls-Royce of picnic baskets

While automakers such as Cadillac and Koenigsegg have prepared debuts for full-size automobiles at Pebble Beach this week, Rolls-Royce has decided this will be the perfect occasion to unveil a picnic basket. That being said, this picnic basket is fully up to Rolls-Royce standards. And that's important because when you take your Rolls out for an al fresco lunch, a plain old blanket and an Igloo cooler simply won't do. There will only be 50 of these baskets made and they will accompany the final 50 Phantom Coupes and Drophead Coupes. Each is crafted from American walnut wood and leather that is coordinated with its accompanying car's exterior color. The basket also has milled aluminum hinges with the debut locations of the cars' concept predecessors. Because of course it does. View 11 Photos The basket is equipped with only the finest dining wares including a walnut cutting board, Rolls-Royce embroidered napkins, and stainless steel cutlery. Then there's the genuine lead crystal wine glasses and dishes with details in black paint and platinum. Obviously silver or gold wouldn't cut it. The basket will be shown at the Pebble Beach Concours d'Elegance this weekend. So if you're there and are wondering why a picnic basket is being so prominently displayed, now you'll know. Related Video: