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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.

Best in Show From 2016 Geneva Motor Show | Autoblog Minute

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Aston Martin considering US plant for DBX production

Aston Martin could be the next foreign automaker to begin production in the United States, according to the latest report from the Financial Times. The British automaker is reportedly considering a number of possibilities to handle assembly of the production version of the DBX crossover concept presented in March. Among them is the prospect of building a new plant in a Southern state like South Carolina or Tennessee, which could bring with it significant tax breaks and other incentives that would ease the process and make it financially attractive. Aston's main plant at Gaydon, UK, is reportedly nearing capacity as the company ramps up production, with a series of new models on the way. It moved production of the Rapide, its only model produced overseas, back to Gaydon in 2012 after it was initially handled off-site by Magna Steyr in Austria. That doesn't mean that the US proposal will necessary get the nod, though. Another possibility Aston is considering is taking over the former Jaguar facility at Browns Lane in nearby Coventry. The DBX concept was unveiled as an electric crossover coupe at the Geneva Motor Show last month, showing the way forward for the brand. The production version is expected to adopt a more conventional setup with four proper doors and an internal-combustion engine.