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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.

Lotus responds to rumors of demise, promises 2016 MY Evora

It's not been a great week for Lotus. Seven days ago, the UK-based automaker laid off a quarter of its workforce, terminating "up to 325 jobs." And then, just a few days ago, it was reported that the company would be ending US sales of its well-received Evora due to the expiration of an airbag exemption. The Evora is the only vehicle Lotus sells in the US, meaning its end effectively removes the brand from the market.
That was apparently a bridge too far, though, as the company has issued defiant statement, claiming it'll be back, in both the US and Canada, for model year 2016, with an air-bag compliant Evora.
"I know that this will be welcome news to our thousands of owners and fans in North America, but the reality is that there was never any intention to leave. The North American market is vitally important for us and we intend to expand our dealer network and grow our sales volumes in the future," Jean-Marc Gales, CEO of Group Lotus said in a statement. "I would like to thank our fantastic Lotus following for their support over the years and remind them that we are working on many exciting products for the future. We will continue to explore our core values on how to make a sports car better by making it faster, lighter and maintain the pure driving experience."

Lotus Emira V6 First Edition Road Test: The most fun for $100,000

You really couldn’t script it more perfectly. The Lotus Emira is a dream sports car. ItÂ’s good that we all recognize that here and now, as far too often in the super- and sports car world, the market doesnÂ’t realize what an astounding thing it has until sales have gone cold, and the manufacturer kills it off. Cough, Acura NSX. In a way, the Emira is a love letter to everything enthusiasts desire about driving. Lotus is in a state of transition – the EVs are coming! The whole automotive industry is changing, and cars like the Emira are the ones weÂ’ll point to as high-water marks for this era. Not because it has a 0-60 mph time that can embarrass competitors. Not because it pioneers any particular technology in general. Truthfully, itÂ’s not remarkably pushing any boundaries on paper, but IÂ’d argue, who cares? It has an aged 3.5-liter supercharged V6 borrowed from Toyota that makes a fine – but not eyebrow-raising – 400 horsepower and 320 pound-feet of torque. ThatÂ’s actually less horsepower than Evora variants like the GT and Sport 410 made, which is the opposite direction sports cars typically go in for a new generation. It has hydraulic steering, and there isnÂ’t a single driver assistance nag in sight (donÂ’t worry, it still has cruise control). You pick your suspension setting from the factory: Tour or Sport. It does have a few drive modes, but they donÂ’t adjust the suspension or steering. An automatic transmission is available, but please skip that to enjoy one of the best-shifting gearboxes in the world. And oh yes, you can watch the exposed linkage work its mechanical joy. Same goes for the visible throttle actuator that can be seen in the rearview mirror through the glass separating driver from engine. Yeah, Lotus gets us. If youÂ’re salivating and frothing at the mouth by now, then youÂ’re just the sort of person Lotus has in mind for the Emira. Of course, the catch with anything wearing a Lotus badge in the past was the uncertainty around buying a car from a low-production British outfit and the accompanying lack of modern amenities. Even though the Evora was a step toward Porsche in so many ways, it still felt and acted like a classy kit car with its Alpine head unit, borrowed parts and general lack of polish. The last Evora GT test car we had leaked from both A-pillars with the windows up while driving in a rainstorm. Would a factory-fresh 718 Cayman ever do such a thing? I would think not.