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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.

Jaguar to reveal small sedan at Paris show

Small sedans are big business for luxury automakers. The C-Class is the top seller for Mercedes-Benz, much as the 3 Series is for BMW, but Jaguar has historically missed out on that market. Its last attempt, the X-Type, proved woefully inadequate, and Jaguar hasn't attempted to take on that market again since. But that's all about to change.
Coventry has been working on a new small Jaguar for some time now (using test mules like the one above wearing modified XF body panels), and according to the latest reports coming in from the UK, it will showcase the result of those efforts at the Paris Motor Show next October. The show car will take the form of a pre-production concept that is expected to preview the production version very closely before the final item is unveiled at the 2015 Geneva Motor Show.
Tipped to be called XS (somewhat appropriately for the brand's smallest model), the new sedan is expected to be the first to use the company's new aluminum platform previewed by the C-X17. Expect styling to follow along similar lines to said crossover concept and the F-Type sportscar, with eventual sedan, wagon and coupe versions to round out the family.

Refreshed 2020 Jaguar XE gets upgraded interior

Jaguar said it listened to feedback — or complaints if you prefer, and want to be more blunt — from customers and even journalists to guide the first midcycle refresh of the XE sports sedan. While it made some exterior tweaks, the biggest changes are inside the cabin. There, Jaguar did away with hard plastics and added some new technology borrowed from the electric I-Pace, with XE's new door trims that will eventually serve as a template for all models, with improved ergonomics and more premium, soft-touch materials. "That was a really big job," says Ian Callum, Jaguar's director of design. "That's more than a normal facelift would normally get. What I think we've done with the interior is bring Jaguar back to its natural level of ambience and luxury. You sit in the car now, it's a great interior. We're really proud of it." Gone are the hard plastics in favor of new leather on the dash, door panels, seats, head rests and steering wheel. There are also carbon fiber panels around the front and rear door handles and the pistol shifter, which was borrowed from the F-Pace and replaces the previous version's dial shifter. The front-seat leather headrests are embossed with the Jaguar leaper logo, and the stitched-leather seats are a new design. The new front and rear door panels feature a more ergonomic 360-degree leather pull handle, replacing the previous design that had it as part of the door armrest. There's also a slot down low designed to securely stow reusable water bottles. Callum said the new door panels will appear on all future Jaguar models. The XE also features a redesigned center console with more storage, a pair of USB ports positioned inside the stowage bin along with an auxiliary power jack, and the second-generation heads-up display has improved graphics. Borrowed from the electric I-Pace is the optional InControl Touch Pro Duo touchscreen, which is kept separate from the climate control screen that retains two dial knobs. Also available is a wireless phone charging port, a first for Jaguar, along with Apple CarPlay and Android Auto compatibility. "We've taken something from a much higher car into our small family car, which is the right thing to do," Callum said. "We've got to cascade all that good stuff into our affordable car and try to work around it. It was challenging, because it costs money, but it's what people expect.