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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 Land Rover recalls Takata airbag-equipped cars

In the latest chapter of what feels like the never-ending recall, Jaguar Land Rover announced that it's calling back 2009-2011 Jaguar XFs and 2007-2011 Land Rover Range Rovers for defective Takata airbags on the front passenger side. These Takata airbags have propellant that may have degraded and, if activated, could release metal shrapnel. The company is breaking up the recall into four phases, since currently there are not enough parts to do a full recall. Since the airbags can be more seriously affected by high heat and humidity, the first phase will cover vehicles that were sold and/or registered in regions with high temperatures and humidity. The regions included are as follows: Alabama, California, Florida, Georgia, Hawaii, Louisiana, Mississippi, South Carolina, Texas, Puerto Rico, American Samoa, Guam, the Northern Mariana Islands, and the US Virgin Islands. Other phases will begin as parts become available, and priority will be given to regions at greater risk of having defective equipment. Jaguar Land Rover encourages owners of affected vehicles to go to www.SaferCar.gov to check if their vehicle is included in the current recall. The first phase includes 54,000 of 108,000 affected vehicles. The company is also notifying owners of the issue, who will eventually get a second notification when parts are available so they can schedule a time to have the airbags replaced. Related Video:

Jaguar I-Pace eTrophy: New EV, new series — Jaguar's going racing

Luxury carmaker Jaguar is teasing the 2018 launch of a five-seat electric sports car based on its I-Pace concept as its first battery-electric vehicle. The Indian-owned automaker released images of the sports car as part of its announcement that it will launch the world's first international production EV race series in 2018. A performance SUV version of the I-Pace, previously reported and presumably based on a concept revealed late last year, is also planned for late 2018. Jaguar has said it plans to electrify all new models after 2020, part of a wave of similar announcements as governments in England, China and elsewhere have announced plans to eventually ban the sale of gasoline or diesel cars. In its announcement, Jaguar said only that the race series would "support the launch" of the I-Pace five-seater. View 7 Photos At the Los Angeles auto show last year, Jaguar said its concept I-Pace crossover SUV would have a 220-mile range from its 90-kilowatt-hour lithium-ion battery pack, designed and engineered entirely in-house. The Jaguar I-Pace eTrophy series is a support series for the FIA Formula E championship and will exclusively feature up to 20 all-electric Jaguar I-Pace racecars across 10 races in cities including Hong Kong, Paris, Sao Paolo and New York. The racecars will be built at the Jaguar Land Rover Special Vehicle Operations in Warwickshire, England. "With the launch of the Jaguar I-PACE eTROPHY, we have strengthened our commitment to battery electric vehicles, international motorsport and Formula E," Gerd Mauser, chairman of Jaguar Racing, said in a statement. "As a British team, we are proud to announce today the launch of the world's first production battery electric vehicle championship." He added: "Ultimately this innovative series will enhance the technology in our future electric vehicles and benefit our customers." Jaguar says it will release technical specifications, race calendar and costs for the I-Pace eTrophy in 2018. Related Video: Green Frankfurt Motor Show Jaguar Electric Racing Vehicles Performance Sedan Frankfurt 2017 jaguar i-pace