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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.

Can a Jaguar XKR-S be drifted while blindfolded?

Bring together a 550-horsepower Jaguar XKR-S and a rain-soaked skidpad, and it's almost impossible to not end up in a sideways drift... accidental or on purpose. With that in mind, the gang over at Autocar got a hold of the monstrous XKR-S for the latest installment of "Will it Drift?," only they raised the stakes a little by attempting the feat with a blindfolded driver
We've driven the XKR-S a number of times here at Autoblog (including a First Drive, Review and Quick Spin), so we weren't at all surprised to learn that blind drifting in the car is possible. But what is remarkable is the ease at which it happened. This, of course, can be credited as much to the car as to the driver, Steve Sutcliffe. Check out the impressive video for yourself, which is posted after the jump.

How and why Jaguar designed an electric SUV

Adrian Belew, front man of famed progressive rock band King Crimson and collaborator with Bowie, Zappa, and the Talking Heads, released a prescient song in 1982, but we didn't know exactly how prophetic it was until this week. The song was titled Big Electric Cat, and its lyrics seemed to predict nearly 35 years ago the unveiling of Jaguar's first all-electric vehicle, a production-ready crossover concept with the not-so-ingenious name, I-Pace. She arrives like a limo/Smooth and moving/On the prowl through the crowd/To the beat of the city/She glows in the dark/Wherever she parks/Concrete crumbles and the night rumbles. At first glimpse of the I-Pace, you may not have precisely the same feeling of disintegration as the roadbed Belew mentions, but there is no denying that the new Jag is important for the brand. Flush with investment from its corporate overlords at Tata, the company is on its most robust product offensive ever, rounding out its lineup to become a full-range manufacturer, investing in autonomous driving and projective head-up technologies, nearly doubling global sales, and now going electric. "This is probably the most important car since the E-Type, I really mean that," says Jaguar director of design Ian Callum. "And when we get this car out into production and it gains recognition and popularity, I think history will show it's a significant step for the brand. Not only because we're embracing the future, quite openly and honestly, but because we're going to beat the rest of them. Tesla is there already, but none of the rest." As a challenger brand – one not in the top of mind consideration set like rivals at Mercedes, Audi, or Lexus – Jaguars are made or broken on this kind of differentiation. The I-Pace is certainly distinctive, and looks like nothing else on the road. Like many contemporary Jaguars, its rear three-quarter view is its most compelling, with the slender half-round taillights inspired by the legendary E-Type that were first revived on the F-Type and have since become a signature. But here, the rear end is shaved off and in an angular concavity that seems an effort to take as much mass as possible out of the back, and one that echoes elsewhere on the vehicle: in the scalloped sides, in the continuous path of glass from the base of the front windshield to (almost) the base of the rear liftgate. But especially in the foreshortened and deep-nostriled hood.