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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 XE SVR to challenge M3, C63 with supercharged V8 power

Jaguar has a healthy powertrain range lined up for its new XE, including an array of four-cylinder engines and a supercharged 3.0-liter six that will, for now, serve as the range-topping offering in the XE S. But Car and Driver claims to have it on good authority that an even more powerful eight-cylinder version is in the works, as well. According to C/D, the XE's engine bay has been designed to accommodate the company's ubiquitous 5.0-liter V8 engine, which in the larger XF is offered in several states of tune, including the XF Supercharged with 470 horsepower, the XFR with 510 hp and the flagship XFR-S with 550 hp. Just which version (or versions) would be offered in the XE remains to be seen, but even in its lowest-spec supercharged form, the 470-hp version would already be enough to challenge the 425-hp BMW M3 and the base 469-hp version of the new Mercedes-AMG C63. If Jaguar wants to take on the C63 S, however, it will need to shoehorn in one of the more powerful versions. In the end, Coventry's new Special Vehicle Operations division may opt to offer two versions, like it does with the XFR and XFR-S. Expect the top version, however much muscle it packs, to wear the British automaker's new SVR badge. It just may take a few years before it does so.

Unlatched Jaguar E-Type hood doesn't prevent blind overtakes at Goodwood

One of the things about Goodwood Revival that really sticks with you is that the classic racing cars are really driven hard there. It's never a slow parade around the track, but instead the vintage Ferraris and Jaguars really battle each other, metal against metal, lap after lap. The result is often scraped and bent sheetmetal, no matter how pricelessly valuable the vintage cars are. This clip, shared on the Goodwood Road & Racing YouTube channel, really shows the attitude that makes Goodwood what it is. Rob Huff, in a fixed-roof E-type, is chasing after Nigel Greensall in an E-type Roadster in the Kinrara Trophy race, and man, he really wants to get past. The problem is that every time the nose of Huff's Jaguar gently taps the rear quarter of the white Jaguar, the car's large hood wants to flip up and obscure the view, making overtaking even harder than it already is. Clearly Greensall doesn't want to let Huff ahead of him all that easily. We can only imagine how much work it takes to keep a classic Jaguar like that pointing in the right direction on a slightly wet track, let alone driving blind on a racecourse due to a massive clamshell hood in the way. At least we get a view of the XK six-cylinder engine. Related Video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.