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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.

Baby Bentley studied for 2020, but it might not be cheaper

Bentley may step down a segment with a new, smaller luxury car that it hopes to have ready by 2019. The British luxury marque's fifth model line, assuming that its SUV ever makes it to market, though, is still in the earliest planning stages.
Kevin Rose, Bentley's head of sales and marketing, spoke with Autocar at the Geneva Motor Show about the proposed new vehicle. "At the moment, our line of thinking is for a smaller car. But smaller doesn't necessarily mean cheaper," he said. The brand believes the price floor of its models should be 100,000 pounds ($167,240).
The smaller Flying B isn't the only project being worked on. Rose hinted that it is considering an even more expensive model above the Mulsanne priced at around 300,000 pounds ($501,735) that would compete with the Rolls-Royce Phantom. "The twin pillars of the Bentley brand are performance and luxuriousness. Any car that offers something unique, with both of those bases well covered, is on the table," he said.

Bentley reveals Continental GT V8 S with a bit more of everything

A Bentley seldom lacks for power, but the entry-level, V8-powered Continental GT and GTC will be getting just a bit more when the doors open at the 2013 Frankfurt Motor Show. The 4.0-liter twin-turbocharged V8 in the new Continental GT V8 S and GTC V8 S has been upgraded by 21 horsepower and 15 pound-feet of torque to bring output up to 521 hp and 502 lb-ft. That's no earth-shattering boost, but when you're dealing with a car that weighs over 5,000 pounds, ever little bit helps.
In a rare best-of-both worlds scenario, Bentley has managed to squeeze the extra thrust out of the Audi-derived engine without sacrificing fuel economy, enabling the new V8 S models to cover the same 500 miles on a full tank as the existing Continental GT V8. But the crew from Crewe didn't stop there: they also lowered the suspension by ten millimeters (0.39 inches), stiffened the spring rates by 45% up front and 33% in the rear, tweaked the dampers, fitted a stiffer rear sway bar and recalibrated the stability control, all in the aim of providing a more assertive, engaging driving experience.
The revised models can be identified by their tweaked front and rear fascias, black grille and unique 20-inch wheels. As of right now, it's not clear how much the V8 S will cost over the standard eight-pot Conti, but then Bentleys don't come cheap in the first place. Deliveries are set to begin early in 2014, by which time we hope to have more specifics on price and availability.