1972 Austin Mini Cooper (right Hand Drive) on 2040-cars

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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.

Mini pegs its future on crossovers, electric cars, and the Chinese market

Mini shed light on how its range of models will grow during the 2020s. It confirmed the longstanding rumors claiming it will expand its presence in the crossover segment, and it announced plans to launch more electric cars, including some that will be built in China through a joint-venture established with Great Wall Motors. Executives at the BMW-owned firm have approved what they describe as a realignment of the line-up that's primarily built on three pillars: electric technology, crossovers, and China. "Harnessing new target groups and sales markets will be crucially important for the future of Mini," stressed company boss Bernd Korber. As of writing, Mini's only entry into the crossover segment is the Countryman (pictured), which is well into its second generation, and its only electric car is a variant of the two-door Hardtop. It confirmed two more crossovers are in the pipeline. One is described as a being positioned in the small-car segment, and the other is billed as a compact model. The former will exclusively be available with an electric powertrain, while the latter will be offered with internal combustion engines, though some degree of electrification will almost certainly be available. Mini stopped short of providing concrete details about its future high-riders, and we don't know precisely when they'll be unveiled, but an earlier report sketches the outline of a battery-powered crossover that resurrects the Paceman nameplate and that's about as big as the BMW X1. Possibly called Traveler, or Traveller if product planners select the British spelling, the second model will reportedly ride on BMW's CLAR platform, meaning it will be the first Mini equipped with a longitudinally-mounted engine, and the brand's first rear-wheel drive car. Like its parent company, Mini realistically aims to give customers what it calls the power of choice. While electrification will spread across its line-up, it's not planning on phasing out gasoline- or diesel-burning engines in the near future. It pointed out internal combustion technology remains an ideal solution in some markets. Whether current members of the Mini range will be canned during the realignment is a point executives steered clear of. They confirmed the Countryman will sooner or later return for a third generation, but unverified rumors claim the open-top variant of the Hardtop will retire without a successor in February 2024.

Mini Clubman to get the 'Works,' four-door Hardtop not so much

Performance sub-brands are expanding faster than leftover marshmallow Peeps in a microwave. And Mini's John Cooper Works line is not likely to be an exception. Mini's stand at the New York Auto Show was somewhat low-key, with the debut of the Clubman All4 all-wheel-drive variant on one end and the expected John Cooper Works Convertible on the other. And for the foreseeable future, the Mini lineup will change through redesigns of existing models and the introduction of more derivatives – like a John Cooper Works version of the new Clubman. At least that's what some of Mini's product guys indicated. "The Works is always our top model. John Cooper Works is not just limited to small cars, it's also for compact cars," said Ralph Mahler, Mini's head product manager, in an interview with Autoblog at the New York Auto Show. "Therefore, I wouldn't see anything against bringing the Works to the Clubman. I think it would be a perfect match." Though one was offered in the last generation, a Works model may seem at odds with the new Clubman's mission, as the company has spent considerable effort pitching it as the grown-up Mini, something to rival premium-branded compacts. Yet Mahler sees a possible Works Clubman as the ultimate in the lineup and an exclusive model, especially since he said take rate for the rest of the Works Minis is around 5 percent. Patrick McKenna, Head of Product Planning at Mini USA, said that since the Clubman went on sale early this year, ordering has included mostly highly optioned models, and customers are notably cross-shopping the Audi A3. Loaded up, a Clubman Cooper S All4 pushes past the $45,000 mark. Currently, the most powerful Cooper S produces 189 horsepower from its 2.0-liter turbo four. That's more power than a front-drive A3 1.8T, but less than the A3 2.0T Quattro – and way less than a cheaper Volkswagen Golf GTI. Consider that the engine in the just-released John Cooper Works Convertible produces 30 more horses than the one in the Cooper S and a Works Clubman starts to make more sense. Strangely, the four-door Mini Hardtop, released last year, doesn't appear to be destined for the Works treatment. McKenna said the four-door will continue to offer special appearance packages that offer Works-like touches and offer dealer-installed accessories such as exhausts and horsepower increases.