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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.

Will the Mini John Cooper Works GP get an electric sidekick?

Mini will beat most of its rivals to the burgeoning electric hot hatch segment by releasing a battery-powered variant of the John Cooper Works GP, according to a recent report. If the rumor is accurate, the British brand's second series-produced electric car will also become one of the quickest models it has ever put its name on. Enthusiast website Motoring File spotted what looks suspiciously like an electric John Cooper Works GP testing in Germany, and unnamed sources who are allegedly familiar with the company's plans confirmed the model is currently being evaluated. None of the insiders said the model has been confirmed for production, however. It's too early to tell what will power the electric GP, or how closely it will be related to the Cooper SE. We're curious to find out how Mini will offset the battery's weight; the gasoline-powered GP (pictured) tips the scale at 2,855 pounds, while the SE weighs in at 3,153 pounds. Granted, a generous amount of instant torque can help the hatchback overcome its extra pounds, but masking it on a twisty road will require serious chassis wizardry. If the rumor is true, we'll learn more about Mini's next electric model in the coming months. It might arrive in showrooms in 2022, likely priced above $50,000 and possibly as a limited-edition model. For context, the existing GP is limited to 3,000 units worldwide, and pricing starts at $45,750. Mini made its commitment to electrification clear when it pegged its future on crossovers, the Chinese market, and electric cars. It confirmed it's developing an electric crossover that will be about as big as the Countryman, and it stressed electrification will spread across its range in the coming years. It's not planning on ditching gasoline- and diesel-powered engines soon, though; it wants to give customers what it calls the power of choice. Who else is in the game? Electrification still hasn't reached hot hatch land, and Mini's rumored electric GP would be one of the first cars of its kind. Volkswagen has often hinted it wants to build a spicier version of the Golf-sized ID.3 sold in Europe, but we haven't seen the model yet; the firm is understandably allocating its resources to ramping up production of volume-oriented models, like the ID.4 crossover. Across the pond, Renault transformed the humble Zoe into a 460-horsepower, four-wheel drive superhatch in 2017, but the project fizzled before it spawned a production car.

Cargo ship carrying 1,200 Jaguars and Land Rovers deliberately run aground [w/video]

A cargo ship carrying a load of new cars out of Southampton has run aground in the English Channel in between England and the Isle of Wight. The vessel apparently suffered some sort of failure just 45 minutes after leaving port that caused it to list heavily to the starboard side before the crew deliberately beached it on Bramble Bank to prevent the ship from capsizing altogether. The vessel, called the Hoegh Osaka, is a 590-foot car carrier weighing some 57,000 tons and registered in Singapore. Although several automakers (including Honda and Bentley) were reportedly looking into whether they had cars on board, the vessel is said to have been filled to approximately one-third its capacity, with 1,400 vehicles on board – including 1,200 Jaguar and Land Rover vehicles, 65 Mini models and one Rolls-Royce Wraith. 70 to 80 pieces of construction equipment were also said to be on board. The Hoegh Osaka was en route from the southern British port of Southampton to Bremerhaven, Germany. Fortunately, no major injuries have been reported. The crew was mostly airlifted by helicopter off of the beached ship, with two crew members evacuated by lifeboat. One crew member reportedly jumped over 25 feet off the ship into the water before being immediately retrieved by rescue workers. According to the Daily Mail, two crew members were treated for non-life-threatening injuries, including a broken leg. It may take several days, if not longer, to extract the vessel from the sand bank and ascertain the damage to the ship and its cargo. An early attempt to free the ship with tugboats failed, meaning that the Maritime and Coastguard Agency may have to wait until more favorable high tides to try again before towing the ship back into the port. Bramble Bank, where the vessel was run aground, is a well-known obstacle to maritime navigators. The Queen Elizabeth 2 ran aground there in November 2008 with 1,700 passengers on board, but was quickly freed by four tugboats and was able to continue on its way. Two local yacht clubs also play a cricket match there every year at low tide. The vessel's operator, Hoegh Autoliners, praised the skill and quick thinking of the crew in acting to prevent the ship's capsizing by running her aground on the soft, sandy shoal. Watch the clip below for aerial footage of the beached ship, courtesy of the BBC. This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.