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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.

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Honda reveals new Civic hatch for WTCC

If you thought the Honda Civic Type R prototype we drove in Japan looked cool, and that the Civic Tourer that Honda will race in the British Touring Car Championship next year looks even cooler, just take a look at this.
Possibly the ultimate race-spec Civic, this is the car Honda will field next year in the World Touring Car Championship. Like the Type R prototype (but unlike the BTCC-spec wagon) the WTCC challenger takes the form of Honda's latest Euro-spec Civic five-door hatchback.
It's the car with which Honda intends to defend its title and capture the driver's title in next year's championship. It'll face a tough challenge from the new Citroën team headlined by Sebastien Loeb in the new C-Elysee, not to mention the rest of the grid. Fortunately, Honda is entering a whole mess of these Civics in the series, with former champion Gabriele Tarquini and former F1 driver Tiago Monteiro driving the works entries (hence the mixed "Gabriago" tag on the window) and another pair to be entered by privateer teams.