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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.

China’s Great Wall looking to partner with BMW to sell cars in the West

The Chinese automaker Great Wall seems to have moved on from courting Fiat Chrysler. According to Reuters, the company announced in a stock exchange filing that it's looking to collaborate with BMW's Mini brand in some way. Reuters also reports that BMW is open to discussion. We reached out to a BMW representative, and he provided us with an official statement regarding the news. The company didn't specifically say it is talking with Great Wall. What it did say is that it has had success with its current partnership with another Chinese automaker Brilliance, but also that the company is interested in expanding the Mini brand worldwide and in China. The statement says that Mini's future strategy and expansion will include "diversification of partnerships and new cooperation models." It also said that expanding in China "is only possible with a local partner." That sounds to us like BMW is pretty interested in working with Great Wall. This move comes about a month and a half after Great Wall attempted to purchase parts of Fiat Chrysler. The company was reported to be talking to FCA to purchase the Jeep brand, and it later confirmed that it was interested in that brand, a few, or the whole company. But things seemed to fall apart when Fiat Chrysler's CEO Sergio Marchionne announced it hadn't received any offers and wasn't working on any kind of deal with another company. Now it may seem a little odd that Great Wall would shift from trying to buy an SUV brand, or a company that is beginning to concentrate on crossovers and trucks, to one that specializes in compact cars. After all, they're fairly different segments. Our theory is that Great Wall isn't necessarily interested in the specific products, but more that it's looking for a gateway to Western car markets. It's not something new for the company. As far back as 2013, the company made it clear it was looking to start selling cars in America. It also started looking into a manufacturing facility in Mexico earlier this year, which would supposedly supply vehicles to both Mexico and the U.S. Now when Great Wall announced its American sales intentions, it was targeting a date of 2015. That obviously didn't happen, and it probably has something to do with the company's products. Most of the cars under the Great Wall and Haval brands bear an uncanny appearance to discontinued models from other companies that compete in the West.

2016 Mini Cooper Convertible First Drive

Conventional gearhead wisdom says to go for the biggest, most powerful engine. For the first two generations of Mini Convertible, this was a no-brainer. You bought the Cooper S. But as Senior Editor Alex Kierstein argued in our first drive of the Cooper S soft top, the less-powerful Cooper Convertible has an ace up its sleeve: a highly entertaining, three-cylinder, turbocharged engine. After some time behind the wheel, this two-time Mini Cooper S (hardtop) owner is ready to say the Cooper Convertible is the droptop Mini you should buy, full stop. The Cooper's 1.5-liter turbocharged three-cylinder makes just 134 ponies and 162 pound-feet of torque. That's a 55-horsepower deficit and an extra 1.5 seconds, compared to the Cooper S. But who's clocking a Mini Convertible with a stopwatch? The 8.2 seconds it takes to get to 60 mph is perfectly adequate , and the triple's power delivery is addictive. Peak torque comes in at 1,250 rpm, making for effortless acceleration around town. The engine is positively diesel-like in the way it generates twist below 4,000 rpm, and the way it runs out of steam well before its 6,500-rpm redline. But this isn't annoying. There's more than enough torque to make the Cooper's acceleration sprightly around town. Think about it this way: The Cooper S' 2.0-liter turbo has enough power to rescue you from bad driving. But because of the turbo lag and the wheezy top end, the base Cooper forces you to manage your momentum. In that way, it's not unlike the Mazda MX-5, Toyota GT86/Subaru BRZ, and other so-called "momentum cars," that require drivers to maintain speed for a good corner exit. That, friends, is fun. But some of the car's shortcomings are less fun. We praised the triple's "offbeat, enticing growl" in our first drive, but this is still a three-cylinder engine and it vibrates like one. There's a diesel-like clatter from the direct-injection system on cold starts. And when rolling off the line at part throttle, the triple sends a weird vibration right to our hips. It disappears quickly as the speed increases, but the sensation is consistent enough to be annoying. Aside from the interesting powerplant, the best driving goodies aren't reserved only for the Cooper S. Tick the right boxes, and the regular Cooper can fit the adaptive dampers we raved about on the Cooper S first drive – Dynamic Damper Control is a $500 standalone option or included in the $1,750 Sport Package.