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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 remains bullish on diesels

Despite Volkswagen's recent diesel scandal, Jaguar Land Rover is pushing ahead with ambitious plans to roll out the technology across most of its lineup in the coming years. Jaguar and Land Rover will add diesel engine variants to every model in their lineups, except for the Jaguar F-Type sports car. Land Rover launched the Range Rover and Range Rover Sport with available 3.0-liter turbocharged V6 diesels, and together they have sold more than 330 units so far in September, their first month on sale in the United States. JLA officials say they've seen no fallout from VW's emissions problem and are adamant their diesels meet EPA standards. "That has been our strategy, and it is not changing," Joe Eberhardt, Jaguar Land Rover North America CEO, told the Automotive Press Association on Wednesday in Detroit. "You have to deal with the situations as they arrive. We are confident of diesel." Jaguar will get another diesel next year from its Ingenium engine family, which will initially be sold in the XE sedan and the F-Pace crossover. It's a turbo 2.0-liter four-cylinder unit and makes 180 horsepower and 317 pound-feet of torque. A JLR spokesman said the Ingenium has not yet gone through the EPA certification process, and the diesel-powered models will arrive in the fall. Jaguar also plans to add diesel engines to the flagship XJ and XF sedans. Land Rovers, including the Discovery and Evoque, will also get diesel options, and the company estimates the technology will offer 20- to 30-percent improvements in fuel economy, depending on the vehicle. Eberhardt said it is "too soon to tell" if the diesel market will be weighed down by Volkswagen's situation. The German automaker admitted to cheating on emissions tests to make its diesel-powered cars appear to run cleaner than they actually do in real-world situations. The ensuing outrage forced longtime VW chief executive Martin Winterkorn to step down and prompted a reorganization of the company, which faces legal and regulatory action around the world. Still, Eberhardt maintains JLR is "very confident" in its diesels, which are part of its strategy to grow sales around the world. Land Rover has experienced rapid growth under the ownership of Indian conglomerate, Tata Motors, while Jaguar is set to revitalize its lineup with new entries like the XE and F-Pace to reach a broader market segment.

Watch feds crush classic Mini caught in importation dragnet

Fair warning for any classic car fans that suffer from high blood pressure: this story might not be good for your health. US Customs and Border Protection is teaming up with British law enforcement to keep unsafe, imported vehicles off the road here – like this Mini. In the government's view, the only way to make things right is to crush the cars, apparently. The destruction is part of Operation Atlantic, a crackdown on Minis and Land Rover Defenders that are being illegally imported. According to Yahoo Autos, this is just one of about 100 vehicles from the dragnet. This specific car came into the US in June, and its VIN indicated a model from 1988. However, the vehicle had a different engine than it should have, and the steering wheel was on the wrong side. It was likely actually from around 2000. To emphasize the crackdown, government officials and press gathered at a New Jersey junkyard to destroy the car. Check out the video below to watch the carnage and listen to the horrible crunching noises, and read the sad press release below. This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. Trans-Atlantic Partnership Seeks to Crush Illegal Trade of Unsafe Vehicles NEWARK, New Jersey-U.S. Customs and Border Protection (CBP) destroyed an illegally imported and unsafe Mini Cooper Thursday at a salvage yard in New Jersey following a recent seizure at the Newark Seaport. CBP captured photos, b-roll and principal sound bites for use by news media. This Mini is just one of dozens of vehicles intercepted at ports of entry across the U.S, including ports in Baltimore, Philadelphia, Norfolk, Virginia, Charleston, South Carolina, Savannah, Georgia, Jacksonville, Florida, Houston and Tacoma, Washington. Over the past year, CBP has increased targeting and inspections of suspect imported vehicles, specifically Minis and Land Rover Defenders, as part of Operation Atlantic, a new trans-Atlantic partnership between U.S. and U.K. regulatory and law enforcement officials. "Intercepting illegal and unsafe imports is a top priority for CBP," said Brenda Smith, CBP's assistant commissioner for International Trade. "Through Operation Atlantic, we are stopping illegally imported, unsafe vehicles from driving on our roadways, and at the same time, partnering with our colleagues in the UK to stop this criminal activity at its source." Launched in March 2014 by CBP's Commercial Targeting and Analysis Center (CTAC), U.S.