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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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Turbo Honda S2000 could battle Miata and 124 Abarth

Rumors are again swirling that Honda could have a new sports car under development to slot below the forthcoming NSX. Autocar claims the model would revive the S2000 name, but offer 1.5- and 2.0-liter turbocharged units at the front to drive the rear wheels. Autocar alleges this info comes from unnamed "company insiders," and asserts the new S2000 could have a base model with a 1.5-liter turbo that makes about 180 hp – almost 60 hp down from the original convertible. However, a hotter version – possibly with Type R badging – would reportedly have a detuned form of the 306-hp 2.0-liter in the Civic Type R. Both trims would have a six-speed manual. Competing rumors contend that Honda could be developing two different performance models. Patent images suggest the company might have a smaller version of the NSX under consideration in addition to the rumored S200 revival. The mid-engine coupe would allegedly use a hybrid powertrain based on the Civic Type R's engine to make a total of about 400 hp. However, Autocar claims the S2000 successor has the higher priority of the pair, but it doesn't mention where the info comes from. The Honda S660 kei car on sale in Japan shows that the brand is willing to dabble in new sports cars, but that convertible isn't practical for the US market, according to the automaker's bosses. Dealers meanwhile continue to beg a performance model in the lineup, so it's possible one of these rumored projects eventually could arrive in showrooms. Related Video: