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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.

Ferrari and Jaguar dominate the 2017 Arizona Auctions

The 2017 Arizona Auctions took place this past weekend, and one look at the results should be a reminder that big-name auto auctions are no place for mere mortals. Aside from the fast paced nature – seven auction houses moved 3,486 vehicles across the auction block – the rarest and most desirable cars sold for more than most people will make in a lifetime. There were around 20 cars that sold for at least $1 million, with Bonhams topping the list with a $7,370,000 1963 Jaguar E-Type Lightweight. Despite $259.8 million in sales, Hagerty reports that 2017 was only the second biggest weekend in the Arizona auction's long history. The figure was up $9 million from 2016's total, but much of that increase can be attributed to the 12-percent increase in the total number of cars auctioned. The average selling price was $89,601, with the vast majority of vehicles selling for less than $100,000. Aside from the 1963 Jaguar E-Type, there were a number of rare and noteworthy vehicles for up for grabs. RM Sotheby's $6,600,000 1939 Mercedes-Benz 540K Special Roadster was the runner-up in value, followed closely by a $6,380,000 1952 Ferrari 340 America Competizione Spider from Bonhams. The various top-10 lists were awash with Ferraris and other European automakers, though much of the lower-end sales were populated by classic American autos. Most of the top sellers were built before 1970, though the occasional newer model (1995 Ferrari F50, 2005 Porsche Carrera GT, 2006 Ford GT) made it through. Based on 2017's overall theme, it appears that interest on cars from American automakers is on the rise. Hagerty notes that a number of 1980s American sports cars like the Chevrolet Corvette and Pontiac Firebird did surprisingly well. Look for the 2018 auctions to see if the momentum continues. Related Video:

2016 Jaguar XF First Drive [w/video]

Jaguar has never had a problem with style or driving joy. Every generation of the British brand's vehicles – with excuses made and accepted in advance for S-Type and X-Type and other outliers – has offered compelling styling and great performance. New kid XF was no exception when it was introduced in 2007. The car's sheetmetal pointed the way forward for the fully up-to-date range we see now, and its confident engines and handling chops were on pace with the best Bimmers, Benzes, and Cadillacs. The first-generation XF made some hay for Jaguar, selling around 280,000 copies through 2014. But those annualized rates still represented a blip on the luxury midsize radar when viewed against the backdrop of the German Three's numbers. Part of that sales story has been down to the E-Classes and 5 Series of the world being consistently excellent, to be sure. But a lot of the blame can be found in Jaguar's historic weak spots. Grace and pace the brand had in spades, but consumer perception of quality and reliability just weren't there, pricing was typically near the top of the class, and the residual values of the cars were low (a combination of all three factors, most likely). Of course, Jag would love to sell a few more cars. But this time, instead of simply building a great-looking, great-driving new XF (which is absolutely the case), the brand is doing some clever non-engineering-based things to put more big cats in more garages than ever before. The tradeoff of very good ride quality is worth the minute amount of roll. After flying all they way to Spain – Pamplona and the Navarra Circuit, by way of Barcelona and a Range Rover adventure you'll hear about soon – I would be remiss not to tell you how the new XF goes down the road. Some 150 kilometers (93 miles) of motorway and challenging b-roads lie between the city with that annual livestock problem and the 2.44-mile, FIA approved racecourse. A route that led me to understand that this XF, in my case the 380-horsepower XF S, has gained more than it has lost in the generational changeover. The company is fully committed to aluminum for its midsizer, with the new car now using a body structure that's 75-percent built from the stuff. I'm told that means a body in white that weighs just over 600 pounds, and an overall weight savings of 11 percent. Body stiffness has been raised by 28 percent in the process.