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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.

Is the Jaguar XFR-S really worth $17k more than the XFR? [w/poll]

Adding performance to a car is rarely cheap - whether you're looking to do it yourself or rely on the factory to do it for you. In the case of the new Jaguar XFR-S, the cost differential over an already-impressive (and somewhat expensive) XFR is a stout $16,800. Auto Express recently got a hold of both cars to see whether that price pays off on the track.
For that price, Jaguar gives the XFR-S an extra 40 horsepower and 41 pound-feet of torque - for a total of 550 hp and 502 lb-ft - to go with a stiffer suspension, beefed-up differential and, of course, meaner styling. We don't want to ruin the results of the AE video, but right off the bat, the host says that you can feel the extra power of the XFR-S, but that it's not a "night-and-day difference."
Scroll down to see what happens when two high-powered Jags go head-to-head on a track. And then be sure to let us know whether or not you think the added money is worth it for the XFR-S in the completely informal poll below.

Jaguar Land Rover might buy another luxury brand that it doesn't need

It seems that Jaguar Land Rover may be getting bigger in the near future. According to Bloomberg, the company is looking at acquiring some tech companies, and possibly yet another luxury car brand, provided that it fits with the current lineup of cars. On the surface, this makes some sense since Bloomberg reports that a whopping 78 percent of Tata Motors' revenue comes from luxury brands. And of course, any kind of tech acquisition could be useful considering the rapid development of electric and autonomous vehicles. But dig a little deeper, and a possible luxury brand acquisition just doesn't make sense for Jaguar Land Rover. The main reason for this is that the Jaguar and Land Rover brands have the luxury market thoroughly covered. Both brands offer full luxury lines from entry-level to high-end ( Discovery Sport to Range Rover on the Land Rover side, and XE to XJ on the Jaguar side). They also cater to every kind of luxury, from sporty vehicles such as the F-Type and SVR Land Rovers, to cushy luxury machines such as the XJ and Range Rover. So whether the company is competing with BMW or Mercedes, Jaguar and Land Rover have the bases covered. There aren't any other typical luxury brands that would actually add anything to the current lineup. In fact, adding another conventional luxury brand could actually result in the new brand poaching existing Jaguar and Land Rover buyers, rather than picking up new ones. What would make more sense for Jaguar Land Rover would be to pick up either a more mainstream brand, or an ultra-luxury marque. Neither Jaguar nor Land Rover has something that competes directly with the likes of Ford or Toyota in the mainstream game, or Rolls-Royce or Bentley at the top of the luxury heap. Picking up a brand in one of these segments would allow JLR and Tata Motors to actually expand offerings and pick up more sales, rather than having an internal competitor. What path would be ideal? Probably going even farther upmarket. Supercar makers and ultra-luxury brands continue to sell well, and there's the potential for significant profit by layering on features and content to existing platforms. Perhaps the best possibility for a high-end complement to Jaguar Land Rover would be Aston Martin. Not only does it have a strong reputation and line-up, it also could handle both supercars and luxury sedans, thanks to its Lagonda sub brand. Of course it would require Aston Martin to be receptive to a purchase.