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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.

And the first Bentley Bentayga goes to... Queen Elizabeth II

The Bentley Bentayga aims to be a lot of things to a select few people. But as the world's fastest, most powerful, and (arguably) most luxurious SUV on the market, it could all boil down to bragging rights for some. So who will get to enjoy the privilege of receiving the very first one? Probably the one person in the world who needs to brag the least: Queen Elizabeth II. The sovereign monarch of the United Kingdom (and more current and former commonwealth countries than we care to count) already rides around in a Bentley State Limousine specially made for the purpose and based on the old Arnage. But she'll now be adding a new Bentayga to her royal motorpool, using it specifically to go hunting at one of her estates in Scotland. She does, after all, own several in the country – including the official Palace of Holyroodhouse in Edinburgh and (more likely) her private Balmoral Castle in Aberdeenshire. Wherever she chooses to drive it, that's got to hurt for Jaguar Land Rover. The rival British automaker has been supplying the royal family with Range Rovers for years. Then again, both companies – alongside Aston Martin and Vauxhall – all hold royal warrants for supplying goods to Her Majesty. Given how many vehicles the royal family must own (and how the Queen has been known to drive herself about), we're sure there's room for all of Britain's finest. Watch Bentley's American CEO Michael Winkler discuss the Bentayga with a spitting image of Rob Cordry in the video above from Bloomberg. Related Video:

Bentley says Conti Supersports 'isn't on the horizon'

For the longest time, Bentley made a name for itself making ever-faster versions of its core Continental range. These days, however, the British automaker has other things on which to focus. And that means there's little time to spend on developing a new high-performance Conti. After refreshing the Continental GT, GTC, and Flying Spur in 2011, Bentley came out with a new Continental GT Speed in 2012, boasting 616 horsepower. Last year it updated the range again, bumping the GT Speed up to 626 hp and releasing the GT3-R as a road-going version of the racing model, with a 4.0-liter twin-turbo V8 pumping out 572 hp. (A further refresh was rolled out just months ago, but was more cosmetic in orientation.) It even slotted the Speed's engine into the Flying Spur, and did a Speed version of the Mulsanne as well. What it hasn't done, however, is develop a successor to the previous Supersports model. "...A future Supersports model isn't on the horizon at the moment." – Mike Sayer, Bentley The Supersports was the performance flagship of the previous Continental range, boasting 621 horsepower, a 0-62 time of 3.7 seconds, and a top speed in excess of 204 miles per hour. But the current GT Speed is even faster, quoted at 206 mph. And with 626 hp, it's marginally more powerful too. The question, then, is whether an even more potent Supersports is in the works. And the answer is: not just yet. "While we're always looking at ways of extending our unique combination of luxury and performance even further, we're currently focused on delivering the all-new Bentley Bentayga SUV," spokesman Mike Sayer revealed in correspondence with Autoblog. "The Continental family has just received a suite of styling and usability upgrades for 16MY, and a future Supersports model isn't on the horizon at the moment." So while a new Continental Supersports could arrive at some point down the line, it's apparently not a priority right now. And what about the prospect of an even more hardcore version of the Continental GT3-R? Rumors have been circulating of an even lighter version in the works, unburdened by the bulk of the Conti's all-wheel drive system – but we're told that's not in the cards at the moment, either. "The Continental GT3-R has been very well-received around the world. Some regions (including the UK) have sold-out their allocation. A very limited number of cars remain in a small number of overseas markets," says Sayer.