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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.

Surprise! McLaren and Honda finally call it quits

It's been coming for a long while, so it should surprise no one to learn that McLaren and Honda have finally called it quits. Sources confirmed to Motorsport.com and Sky Sports that the two companies have finally settled on a deal that will end a partnership that has been nothing but heartache and tears. McLaren has reportedly inked a three-year deal to use Renault engines, ending in 2020 along with the current engine regulations. This also means McLaren driver Fernando Alonso is likely to extend his contract beyond the end of this season. When Honda first announced it was returning to F1 with McLaren, fans had visions of Fernando Alonso and Jenson Button reliving the glory days of Ayrton Senna and Alain Prost in the late 1980s. The truth couldn't be further removed. At points, McLaren has struggled to make it the full race distance, much less win races and fight for championships. Frankly, it's been embarrassing for both Honda and McLaren. No one comes out a winner here. Honda has sullied any reputation it had in F1, while Alonso's talent and McLaren's engineering expertise were both wasted the past few seasons. According to Motorsport.com, McLaren will get the same engine parity as the factory Renault Sport team as well as Red Bull Racing. Assuming that McLaren can provide a competitive chassis, that should vault it at least into the middle of the pack. Team principal Zak Brown hasn't been quiet about his frustrations. After both McLaren drivers failed to finish in Italy, Brown told Sky Sports, "We need to get more competitive. This weekend showed we're not making any significant progress." Meanwhile, Toro Rosso will switch from Renault to Honda power, with Toro Rosso driver Carlos Sainz Jr. making the move to Renault. What that means for Red Bull's junior team is unclear. Related Video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.

Honda Civic Hatchback Luggage Test: How it compares with sedan and Integra

Well, we have a first here at Autoblog Luggage Test HQ: the first time I've done the next-generation of a make/model that's already been luggage tested. I know, right, very exciting. So, for the first time, I'll be able to report how a vehicle compares with its immediate predecessor. As this is the Honda Civic hatchback, I can also show you how it compares with the Honda Civic sedan and the mechanically related Acura Integra. So. Many. Comparisons! In short, the Civic is a definitive example of why you can't really compare the cargo volume figures of a sedan and a hatchback (or wagon, SUV or other hatchbacked vehicle). The specs say the hatchback has 24.8 cubic-feet of space whereas the Civic sedan has 14.8, yet as I'm about to show you, the sedan actually has more space for holding bags or whatever. This is already a phenomena I covered with the Integra and its 24.3-cubic-foot trunk. Apparently, that half a cube makes a difference as it was indeed easier to load bags into the Civic hatch.  Top Civic hatchback, bottom left Civic sedan, bottom right Integra Some key observations here with this trio. The Civic sedan is 4 inches longer than the Civic hatchback, almost all of which is behind the rear axle. This lends its trunk greater length than the hatchback, which is more useful for stuffing in luggage. The Civic hatchback (and Integra) have more height, which balloons the cubic-foot number, but doesn't really provide much help in this test since I don't pack to the roof for safety, visibility and consistency reasons. If you lower the back seats, it's a whole different ballgame, but I'll get to that later. Now, to the bags. As in every luggage test I do, I use two midsize roller suitcases that would need to be checked in at the airport (26 inches long, 16 wide, 11 deep), two roll-aboard suitcases that just barely fit in the overhead (24L x 15W x 10D), and one smaller roll-aboard that fits easily (23L x 15W x 10D). I also include my wife's fancy overnight bag just to spruce things up a bit (21L x 12W x 12D). You can really see the difference in trunk length here. In the sedan (above right), you can fit the small roller bag behind the four biggest bags lined up. Definitely can't do that in the hatchback above left. In short, all the bags fit in all the cars (with some asterisks). It was a much easier fit in the sedan, though, and you can see that there's some extra space on either side of the egg-crusher hinges.