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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.

This P-51 Mustang replica flies with a Honda Odyssey engine

The legendary WWII P-51 Mustang fighter ranks right up there with hot dogs, baseball, and apple pie. So sought after is the original Mustang that one of the 200 or so airworthy P-51s left will run you at least $1.5 million. That's why there's a thriving replica market with three-quarter-scale aircraft like this Titan T-51D Mustang. It looks every bit the part until you crack open the cowling and find not a howling Rolls-Royce Merlin V12, but the V6 from the Honda Odyssey minivan. To be precise, the Titan T-51 uses Honda's J35A6 60-degree SOHC V6. It's one version of the ubiquitous J-series engine, found in the Odyssey minivan as well as the Honda Pilot. Other variations of the Ohio-built powerplant pull duty in the Accord and several Acura models. But why a Honda V6? Titan Aircraft president John Williams says the company began production of the T-51 with a Rotax 912F four-cylinder boxer engine, but its 100-horsepower output wasn't cutting it for customers. They wanted "more power and more noise." So the search began for a lightweight, easily-packaged V6, leading first to a Suzuki 2.5-liter with 160 hp. "Our guys still wanted more power, so the next choice was either going to be a Chevy V8 or a Honda V6. The Honda is a little bit lighter and from a V6 standpoint, it's a brute. In the Honda Pilot or the Odyssey, it's rated from 240 to 250 horsepower," Williams explains. Converting the V6 to an airworthy powerplant requires minor modifications, such as swapping the stock engine control unit (ECU) for an aftermarket one. Car-specific parameters for things like anti-knock sensing and rev limiters simply don't work well in the air. "You don't want your timing retarded when you're trying to clear a tree," Williams chuckles. With a hotter Acura camshaft and exhaust modifications, the naturally aspirated Honda engine makes about 300 hp in the T-51D, Williams says. The V6 mates to a custom gearbox designed to yield a 2-to-1 reduction for the propeller. Rather than the original Mustang's crankcase oil, the Titan's nosecase uses automotive gear oil. And while the engine can obviously use regular unleaded from any gas station, it runs well on the 100-octane low-lead aviation fuel commonly found at airports. The T-51 is a kit airplane that buyers can build themselves for less than $100,000. And like most kit manufacturers, Titan offers a builder-assistance program to help with assembly.

Honda, Mazda, Mitsubishi, Mercedes also under diesel emissions scrutiny

The controversy over Volkswagen's diesel emissions scandal isn't limited to the US. In Europe, where diesel engines are far more popular, the issue is shining a harsh light on the NEDC emissions test. As already known, the evaluation does a poor job of reflecting real-world production of NOx, and it appears a significant number of automakers are affected. The Guardian in the UK has been reporting on real-world test results from a company called Emissions Analytics. After the latest round of checks, vehicles from Mercedes-Benz, Honda, Mazda and Mitsubishi were found to generate far more NOx than they should. The newspaper also published similar results for Renault, Nissan, Hyundai, Fiat, Volvo, Jeep, Citroen, VW, and Audi. On average, the figures are about four times over the limit of producing the pollutant. Unlike VW and its defeat device, these automakers aren't actually breaking the rules. The vehicles perform up to the NEDC lab test for emissions, but those results simply aren't translated to the street. "The VW issue in the US was purely the trigger which threw light on a slightly different problem in the EU - widespread legal over-emissions," Nick Molden from Emissions Analytics said to The Guardian. A big fight to decide the future of this issue appears to be on the horizon. Automakers claim that they can't meet the next round of tightening emissions regulations and are asking for compromises. Although, spokespeople for Mercedes and Honda told The Guardian that the brands would be in favor of the stricter rules. Meanwhile, some European governments began backtracking their support of diesels well before this scandal came to light. The added scrutiny certain hasn't helped the future of the oil-burner. Related Video: