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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.

Alonso wants an NSX, but did Honda block him from Le Mans?

One of the biggest changes in store for the 2015 Formula One World Championship will see Fernando Alonso moving back to McLaren. That means he'll be driving under Honda power for the first time, after spending the bulk of his career driving for Renault and Ferrari. And being Honda's new poster child, as the two-time World Champion is fast discovering, has its advantages and its drawbacks. According to the latest reports, Alonso had been negotiating a clause in his contract with McLaren that could have seen him driving a Porsche 919 Hybrid at Le Mans this year, but Honda reportedly stepped in at the last minute and scuttled the plan. The drive would have been Alonso's first in the famous 24-hour race, after having had the honor of waving the flag at La Sarthe last summer. In one of the wilder rumors that emerged during the prolonged silence over his move for this season, the Spaniard was also linked to a potential return for Ferrari to Le Mans. That prospect came to naught, and now the Porsche deal has been wheeled into the garage, as well. The upcoming F1 season is expected to be one of transition, adjustment and development for McLaren and Honda, but the Japanese automaker's involvement in his hiring may not be all bad news for Alonso. Following the reveal of the new Acura NSX, Alonso tweeted "You still don't know, but one day we will be together..." followed by a series of heart-eyed smiley-face emoticons and accompanies by images of Honda's new supercar. The implication is that the two-time World Champion is expecting to get his talented hands on an NSX of his own, and we can certainly see how Honda would appreciate the imagery of Fernando driving around in its flagship. Even if it doesn't, though, we're sure McLaren would be glad to hook him up with a company car of its own – though Lewis Hamilton encountered some trouble securing (a very specific) one for himself. Even discounting the front-running F1 machinery he's been tasked with piloting on track to an impressive 32 career wins, Alonso has had some lustworthy company cars at his disposal over the years. At Renault, he had a Megane RS to drive, and during his last stint at McLaren, he had an SLR 722. But since signing with Ferrari, he's been given the keys to FCA models as varied as a Ferrari FF, a special 599 GTO, a Maserati GranCabrio, a Jeep Grand Cherokee SRT and an Abarth 695... and those are just the ones we know about.

Race recap: 2015 British Grand Prix is a testament to timing

In front of his home crowd, Lewis Hamilton actually had to work for pole position at the British Formula One Grand Prix. The World Champion couldn't get on top of the setup for his Mercedes-AMG Petronas on Friday, lapping behind teammate Nico Rosberg and the two Ferraris. Come Saturday, after a few alterations and a whole lot of wing to clamp down on understeer, Hamilton returned to his regular program at the front, taking pole position by just over a tenth of a second from his teammate. Williams, thought to be headed for another stretch in the weeds a few races ago, showed its best strength all year. The Grove team got both cars on the second row and in front of the Ferraris, Felipe Massa qualifying ahead of teammate Valtteri Bottas, but they were eight and nine tenths behind the Mercedes'. Kimi Raikkonen out-qualified Ferrari teammate Sebastian Vettel for the second time this year, and only the first time in a straight-up battle with two healthy cars. But more than a second behind the two cars at the front, and with two nearly-impossible-to-pass Williams' in front, neither the Finn nor the German is happy with where they are. Daniil Kvyat claimed seventh, his side of the garage at Infiniti Red Bull Racing having got through the weekend to that point without a single complaint about their Renault power unit. Carlos Sainz, Jr. put a single Toro Rosso inside the top ten in eighth position, ahead of Nico Hulkenberg who did the same for Sahara Force India by slotting in ninth. The second Infiniti Red Bull driven by Daniel Ricciardo did have an unspecified engine complaint – his car kept "bleeding power" on the straights – but even so he managed to qualify tenth with his second-fastest lap. The stewards deleted his best lap because he ran three centimeters outside the track limits at Copse, an infraction that stung a few other drivers as well. Up in front, what would sting the Mercedes-AMG Petronas drivers the most was the start. That's when a dearth of grip struck both Hamilton and Rosberg, allowing Massa and Bottas to slide right up the middle between them and take the first two places. The leapfrogging was so surprising that it looked like the Mercedes drivers were giving the Williams drivers a head start. They diced through the first corners, Hamilton sliding past Bottas into second place halfway through the lap. And then the safety car reported for duty.