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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 could yet offer more hardcore F-Type R-S

Jaguar pulled a fast one on us all when it unexpectedly shoehorned all 550 horsepower of the 5.0-liter supercharged V8 from the XKR-S into the new F-Type Coupe to supersede the existing V8 S model with the F-Type R. But that's just the beginning, according to the latest intel coming from the UK.
According to Autocar, in speaking to Jaguar design director Ian Callum during the coupe's unveiling at the LA Auto Show, the British automaker could yet offer R-S and R-S GT versions of the F-Type. Just what mechanical changes those would bring when the F-Type R already packs the company's top engine remains to be seen, but given that the same engine also powers the flagship XJR performance saloon, we could envision Jaguar developing an even more powerful version for R-S versions of the little coupe and big sedan.
The GT version, meanwhile, would likely offer more extreme aero and a lighter form for the truly performance-obsessed. Considering that the new top-of-the-line F-Type is already pushing the hundred-grand mark, you can bet any R-S and R-S GT version would approach double the base F-Type's $65k sticker price.

Jaguar to expand Jaguar XKR-S GT production run?

According to a report in Autocar, demand for the Jaguar XKR-S GT is such that the English company could nearly double production from 30 to 50 cars. Such inflation can often incense those have already put deposits down, worried that they've both been lied to about the potentially diminished values of their cars, but Jaguar has made the announcement barely a day after the XKR-S GT was revealed and 50 still isn't that many vehicles.
Nothing in the Autocar report indicates the additional examples will not come to America, making the 500-horsepower superfast coupe a treat we can still call all our own. Jaguar didn't add horsepower but instead honed other aspects of the car to produce a GT that can lap the 'Ring nearly as quickly as a Ferrari 458 Italia, and the world should be the beneficiary, the company's brand director saying, "The real beauty of this project has been that it has extended our understanding of the elements involved in making a car go so fast, and that will feed back into all our road car programs." Sounds good to us.