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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 F-Pace leaps into crossover segment [UPDATE]

UPDATE: Jaguar has issued a statement indicating that the F-Pace cargo volume specified in the original official press release, was incorrect. In short, the correct figure is 33.5 cubic-feet, not 23 cu-ft, and we've updated the text. Here's the statement: "The previous draft of the release we issued incorrectly identified cargo volume in the Jaguar F-PACE using a figure that was not calculated using the US Market standard SAE methodology. The correct specification for rear load space volume in the 2017 Jaguar F-PACE with the second row seats up is 33.5 cu.ft., not 22.95 cu.ft." It's been two years since Jaguar showed off the C-X17 concept crossover at the Frankfurt Motor Show, giving us a deep metallic blue taste of what the world would look like with a leaping-cat in it. Here we have the production result, the 2017 F-Pace, coming to dealerships in Spring 2016. It will be offered in four trims - Premium, Prestige, R-Sport, and S - with three engines. Two supercharged V6 engines come at launch, one with 340 horsepower, the second with 380 hp, both shifting through the same ZF eight-speed transmission from the sedan range. Some time after that a 2.0-liter Ingenium diesel will join the lineup, offering 180 hp and 317 lb-ft. To get in, the price for that eventual diesel is will be $40,9907, while the V6s start at $42,390 and $56,700. If you liked the look of the C-X17 then there's nothing to put you off the F-Pace. The illuminated intakes from the concept are gone and the fender vents have a slightly different graphic, but otherwise you'll find Waldo before you'll find significant exterior changes. The body is one third aluminum, tweaked with high-strength steel, magnesium, and composites creating torsional stiffness numbers that match the new XF. Wheels go from 18 inches to 22 inches, hung at the ends of a double-wishbone setup in front, an integral link suspension in back, and monotube dampers all around, over a wheelbase that's 113 inches. Short overhangs front and back that mean a maximal approach angle of 25.5 degrees, a max departure angle of 25.7-degrees. The standard instrument binnacle is two analogue dials flanking a TFT display, the upgraded unit is a 12.3-inch virtual instrument cluster. It sounds like the interior trim will go as high up as you want it - something has to justify the $14,310 price difference between the V6 models - with "available leather" on the low end, aluminum mesh and satin grey ash at the other end.

Jaguar readying SUV for Frankfurt debut

In an effort to target higher-volume vehicle segments, Jaguar is getting ready to introduce its first-ever crossover, and Autoweek reports that we could see it debut at the Frankfurt Motor Show in September. We've heard in the past that the new Jaguar crossover could carry the name XQ, but the report also mentions that the Q-type name is still in the running (now wouldn't Audi just love that?).
A little more clear than the crossover's name, AW says the cargo-friendly Jaguar should ride on the same platform as the upcoming Jaguar XS compact sedan rather than using a Land Rover platform. As for the on-sale date, it still sounds like the XS will hit the roads first in 2015 with the crossover model due out in 2016.