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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.

Jaguar XF gets performance-look R-Sport trim

If you're looking for all the style of a sports sedan but without the added expense of springing for a full-on performance model (and keeping it fed with fuel and fresh tires), most European automakers will gladly hook you up with an all-show, no-go package. BMW has its M-Sport aero kits, Audi its S-Line, and Mercedes its AMG Sport packs. And now Jaguar is getting in on the action with the launch of the new R-Sport line.
Set to be introduced on the XF at the Geneva Motor Show, the R-Sport trim at least some of the flash of the XFR or XFR-S but with a more economical engine and a relatively accessible price of entry. (This is, after all, still a Jag.) The XF R-Sport is distinguished by a sportier front bumper, side sills, rear spoiler, 17-inch wheels and unique badging to set it apart from any "ordinary" Jaguar XF. The interior is upgraded as well, and there's an optional black styling pack to take things even further.
Jaguar is offering the XF R-Sport in either sedan or wagon form with the 2.2-liter turbodiesel producing 161 horsepower and 295 pound-feet of torque, fitted with a spot-start system to make it a far more frugal option than the 5.0-liter supercharged V8 in the real deal. Although this version won't be coming to US as you see it here, Jaguar tells Autoblog it's always possible it'll produce a similar aesthetic treatment for the North American market - just don't count on such models arriving under diesel motivation. We'll take a closer look at them in Geneva next week, but for now, you can check out the gallery and press release below for an idea of what to expect.

Jaguar Land Rover won't get a bailout from the UK

Bailout talks between Jaguar Land Rover and Tata Steel with the UK government have ended, leaving both firms to rely on private financing to overcome the impact of coronavirus on business, the Financial Times reported on Friday. The report said that talks for an emergency funding fell through as Jaguar Land Rover (JLR) did not qualify for taxpayer support. It is the luxury car unit of India's Tata Motors and Tata Steel, both owned by Indian conglomerate Tata Group. The bailout plan, titled "Project Birch", had been authorized by Finance Minister Rishi Sunak in May to rescue companies that are seen as strategically important, with the Treasury saying it may step in to support crucial businesses on a "last resort" basis after other options run out. The report, citing a source familiar with the matter, said that the funding scheme became infeasible for Tata as it imposed strict conditions on any lending. "Tata Steel remains in ongoing and constructive talks with the UK Government on areas of potential support," Tata Steel said in an emailed statement. The UK Treasury said it would not comment on individual companies. Tata Motors did not immediately respond to request for comment. Related Video: Earnings/Financials Government/Legal Jaguar Land Rover