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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.

Next-gen Honda Accord PHEV may have 39-mile EV range [UPDATE]

UPDATE: Disregard what The Asahi Shimbun said on this. The paper apparently conflated the upcoming Clarity-based PHEV and the non-plug Accord Hybrid and has since updated its article. We got an email from Honda clarifying the situation: The refreshed Accord Hybrid, slated to launch in the middle of this year, will not have a plug-in variant. Honda will bring a new, dedicated plug-in hybrid to market by 2018 that leverages the same platform that underpins the upcoming Clarity Fuel Cell. This new PHEV will feature more than triple the 13-mile electric range of the last generation Accord Plug-in Hybrid. We apologize for the error. Honda's next-generation Accord Plug-in Hybrid could triple the previous model's electric driving range when the new one debuts in the US in 2018. To achieve such a significant improvement, the company would equip the PHEV with a higher capacity battery of the same physical size and more efficient electric motors, according to the The Asahi Shimbun. The next Accord PHEV could drive the equivalent of 68 miles in EV mode, the newspaper claims. However, we believe this figure comes from the Japanese test on electric models, which produces higher figures than the US evaluation. Tripling the 2014 Accord Plug-in's EPA-estimated 13-mile range suggests a number closer to 39 miles when the new generation reaches this country. A figure around 39 miles would still make the 2018 Accord a contender among the current PHEV sedans. For example, the EPA rates the Hyundai Sonata Plug-in at a 27-mile range and estimates the Ford Fusion Energi at 20 miles. The latest Chevrolet Volt, which would likely be smaller than the Honda, wins out with 53 miles of driving distance, though. Honda plans a new pure EV and PHEV in its US lineup by 2018, and the plug-in shares a chassis with the upcoming FCEV fuel cell sedan. The next-gen Accord would give the company another flavor of PHEV to offer customers, too. American Honda Motor Executive Vice President John Mendel told Autoblog last year the company would update the standard Accord Hybrid in 2016 and introduce the next PHEV variant here in 2018. Related Video:

Behind the scenes of our subcompact crossover comparison

The cameras had been set up for almost an hour, and now, the living room filled with the sweetness of freshly brewed blonde roast. The late-summer sun had just started peaking over towering maples. In a week the colors will start changing, the inevitable sign of the coming gray skies and snow. Half past eight, the editors arrived. The Scandinavian inspired house that served as the headquarters for our subcompact crossover comparison couldn’t accommodate all seven of us, so they had stayed at a turn of the century farmhouse down the road. While geese, chickens, cats and sheep made for an authentic Northern Michigan farm experience, ingredients for a good nightÂ’s sleep they were not. Within minutes Red Bulls cracked open and short, cocoa-colored mugs appeared, filled with a variety of caffeinated beverages.  “I thought we were gonna have fried eggs,” Editor-in-Chief Greg Migliore said, smiling, before refusing a muffin. Associate Producer Alex Malburg ran from camera to camera, adjusting focus and exposure, trying to keep up with the ever-changing light, which poured into the room faster each minute.  “I was promised food. IÂ’m not filming.” Consumer Editor Jeremy KorzeniewskiÂ’s sarcasm thinly veiled his true feelings. To keep the group content I promised a craft-services buffet next time.  For the second time, we shot our comparison just outside of Traverse City. While we took advantage of a local off-road park for the first, this round proved a bit more tame, utilizing the hilly, winding, wine-country roads that define the region.  An air of nervousness could be detected. Only one person knew the outcome of our test, Senior Green Editor John Beltz Snyder. I found myself both impressed and surprised he had kept this secret overnight, though I came to find out later that he revealed the winner to Producer Amr Sayour on the drive to dinner the evening before.  The cameras started rolling, the audio recording, but the caffeine hadnÂ’t yet entered the bloodstream, with one exception. Associate Editor Joel Stocksdale sipped his lime green Mountain Dew. That seemed to be working, as he passionately laid out his argument for the Kia Soul and his preference for winter tires over all-wheel drive. From behind the camera I silently disagreed with him. “No one buys winter tires,” Jeremy argued. As we consumed more coffee, the sun came up, and so did the energy of the debate.