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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.

Trump reportedly says he wants to wipe German cars off the U.S. map

BERLIN/FRANKFURT — A report that U.S. President Donald Trump has threatened to pursue German carmakers until there are no Mercedes-Benz rolling down New York's Fifth Avenue dented shares in the luxury car manufacturers on Thursday. An excerpt from German magazine Wirtschaftswoche's article, which cited several unnamed European and U.S. diplomats but did not include any direct quotes, could not be independently verified, while a U.S. Embassy spokesman in Berlin referred questions to Washington. The news and current affairs magazine said Trump had told French President Emmanuel Macron in April that he aimed to push German carmakers out of the United States altogether. Macron's administration in Paris declined to comment on the report. The Trump administration last week opened a so-called Section 232 trade investigation into vehicle imports, which could result in a 25 percent tariff on cars on the same "national security" grounds Washington used to impose metals duties in March. This could destroy exports by German carmakers, which control 90 percent of the U.S. premium market and are the biggest European Union exporters of cars to the United States. BMW owns Rolls-Royce, while Daimler has Mercedes-Benz, and Volkswagen controls Bentley, Bugatti, Porsche and Audi. Daimler, BMW and Audi declined comment. Porsche was not immediately available for comment. BMW shares were trading 0.5 percent lower at 0939 GMT, while Daimler and VW's shares were down 1 percent and 1.6 percent respectively, underperforming Germany's blue-chip DAX. Trump has railed against German carmakers before. And in early 2017, in an interview with German newspaper Bild, he said he would impose 35 percent tariffs on imported cars. At the time, the president called Germany a great car producer but said that the business relationship with the United States was an unfair one-way street. Germany's auto industry association VDA says its members exported 657,000 vehicles to North America last year, with total exports of vehicle components, cars, engines, as well as second-hand vehicles totaling 31.2 billion euros in 2016. Imports from the United States to Germany amounted to 7.4 billion euros, meaning a trade deficit of 23.8 billion euros the VDA's latest available figures show. However, German brands also have huge factories in the United States, where they built 804,000 cars last year, VDA said, providing jobs for U.S. workers. Berlin has reacted angrily to the U.S.

Check out Rolls-Royce's totally awesome AWD mule

No, this isn't just a super badass Phantom. The car you see here – codenamed Project Cullinan – is an early development mule for the new all-wheel-drive suspension system that will eventually be found in Rolls-Royce's upcoming SUV. It's made up of a shortened Phantom body, looks totally murdered out, and has a huge freaking wing on the back. We love it. Of course, Rolls-Royce properly poo-poos any similarities between this mule and the eventual production model. "The body may hint at the size of the new car, but it features no design aspects of the eventual high-sided, all-terrain motor car announced by Rolls-Royce Motor Cars in February this year," the company said in a press release. The end goal of this mule is to create "a final all-wheel-drive system that delivers Rolls-Royce's hallmark 'magic-carpet' ride not only on the road, but off-road too." Screw the SUV. We'll take one as-is. PROJECT CULLINAN BEGINS DEVELOPMENT PROGRAMME AS ENGINEERING MULE APPEARS IN PUBLIC In its open letter on 18 February this year, Rolls-Royce Motor Cars gave an undertaking to inform stakeholders of the progress of Project Cullinan. Keeping this promise, Rolls-Royce Motor Cars has today published photographs depicting the first key milestone in the vehicle's development programme. The photographs are of the first engineering mule, which will be seen on public roads this week. This early engineering mule, based on a shortened Phantom Series II body, has been created purely to begin the development of an all-wheel drive suspension system that will deliver a ride that will be Effortless ... Everywhere. The body may hint at the size of the new car, but it features no design aspects of the eventual high-sided, all-terrain motor car announced by Rolls-Royce Motor Cars in February this year. The mule rides on the first iteration of an all-new suspension that will assist Rolls-Royce engineers in developing a final all-wheel drive system that delivers Rolls-Royce's hallmark "magic-carpet" ride not only on the road, but off-road too. The first series of tests will focus on Project Cullinan's on-road behaviour from suspension throw to high-bodied stability, and will test the new suspension across all types of international road surface specification at test facilities, as well as on public roads. Test surfaces will include; Belgian Pave, cobblestones, corrugated concrete, noise development and measurement surfaces, resonance road, and acceleration bumps.