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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.

Recharge Wrap-up: Pikes Peak Honda CR-Z, Tesla's liquid-cooled cable

Honda will race a CR-Z hybrid in the Pikes Peak International Hill Climb. The car will use Electric SH-AWD, which probably means it will be using electric motors to power the rear wheels. Whether the Pikes Peak CR-Z uses the same powertrain as the upcoming Acura NSX or the 3.5-liter V6 with three-motor hybrid system used in the Acura RLX Sport Hybrid is still unclear. The car will also use Acura's Precision All-Wheel Steering (P-AWS) system. The CR-Z will be piloted by Tetsuya Yamano. Read more at Hybrid Cars, or, if you read Japanese, at Response. Tesla has introduced a thinner, liquid-cooled Supercharger cable. While the convenience of not having to "wrestle a good-sized snake into the car," as Elon Musk calls it in a shareholder speech, is wonderful, it could also allow for faster charging in the future. The liquid-cooled charging cable "also has the potential for increased power of the Supercharger long-term," says Musk. A cable able to withstand larger loads could mean shorter stops when it's time for a charge. Tesla has installed the first next-generation cable at the Mountain View Supercharger. Read more at Charged EVs. Smart is offering its Twinamic automatic dual-clutch transmission on more models in Europe. In addition to the 71-horsepower Smart Fortwo, the DCT will now be available in the 90-horsepower Fortwo and the 71-horsepower Forfour. In the Fortwo, the Twinamic DCT adds ˆ1,275 (about $1,437) to the price over the manual transmission, and is an extra ˆ1,425 (about $1,606) in the Forfour. The option of steering wheel-mounted paddle shifters as part of the Sport package makes driving the efficient microcar even more fun. Deliveries of the newly equipped vehicles begin at the end of July. Read more in the press release below. smart extends twinamic range for fortwo and forfour: Even more models with automatic transmission Stuttgart. Following in the footsteps of the smart fortwo with 52 kW/71 hp, the smart fortwo with 66 kW/90 hp and the smart forfour with 52 kW/71 hp are now also available with fully automatic twinamic dual clutch transmission. This costs an extra 1275 euros compared to the versions with 5-speed manual transmission (forfour: 1425 euros). This means that both model series now offer a choice between no fewer than nine engine/transmission combinations. Delivery of the new models will begin at the end of July 2015.

Four-leaf clovers, hybrid Hondas and the next automotive downturn | Autoblog Podcast #561

On this week's Autoblog Podcast, Editor-in-Chief Greg Migliore is joined by Senior Editor Alex Kierstein and Associate Editor Reese Counts. The group discuss the Alfa Romeo Stelvio Quadrifoglio, the Mercedes-Benz CLS 450 and the Honda Clarity PHEV Alex has been driving in Seattle. They also discuss the future of the auto industry, how customer tastes and needs are changing and what might happen if the world faces another economic downturn. Finally, we spend your money.Autoblog Podcast #561 Get The Podcast iTunes – Subscribe to the Autoblog Podcast in iTunes RSS – Add the Autoblog Podcast feed to your RSS aggregator MP3 – Download the MP3 directly Rundown Alfa Romeo Stelvio Quadrifoglio Mercedes-Benz CLS 450 Honda Clarity PHEV The next automotive downturn Spend My Money Feedback Email – Podcast@Autoblog.com Review the show on iTunes Related Video: