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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 teases new Clubman

Mini is expected to expand its refreshed lineup with the reveal of the new Clubman, at the upcoming Frankfurt Motor Show. So to give us something to look forward to, it has released the teaser image you see here. Previewed in concept form in Geneva last year, by the Vision Gran Turismo a few months ago, and by numerous prototypes spied undergoing testing in between, the new Clubman promises to be even longer and more versatile than the previous model. That's due in part to the emergence of the five-door version of the core Mini Hardtop, which already packs more (or at least more-conventional) doors than the previous Clubman. The new one, then, is expected to go with a similar front-hinged door setup, and keep the split rear cargo doors from its predecessor (and the concept) in place of the smaller model's liftgate. The sketch was revealed on a promo page for Mini's "Go With Your Gut" campaign. Dark and sketchy as it is, there's little to be told from the teaser rendering above, but you can just make out a different roof design from the show car and an offset exhaust in place of the concept's center-exit pipes. We'll just have to hold on for a while longer to see the finished product. Related Video:

Even Mini's manual transmission take rate is only 11%

Of all the automakers we've talked with so far, Mini seems to sell the largest percentage of its cars with a manual transmission. A representative from the company shared numbers with us that show 11% of its 2019 sales have featured a stick. That beats Subaru's 7%, Volkswagen's 5% and Honda's 2.6%. It likely helps that Mini is a more niche brand, and it offers a manual on nearly every version of its cars. Still, it's sad that 89% of Mini owners decided to get an automatic anyway. The manual take rate between different models varies quite a bit. The high-performance John Cooper Works models are most frequently sold with a manual transmission. The two-door hardtop and convertible versions have the highest percentages for the JCW at 41% and 32%. The JCW Clubman and Countryman follow at 22% and 19%. We're not surprised that the fast versions of Minis are sold with a manual more often than others, but we're surprised that even with two in 10 JCW Clubman and Countryman models selling with one, Mini would drop the option from the new 301-horsepower versions. Unsurprisingly, other trim levels aren't purchased with a stick as often. The least popular is the front-drive Cooper S Countryman at 0%, followed by the regular Cooper Countryman at 1%. Then there's the Cooper Clubman at 3%. Weirdly, the all-wheel-drive Countryman and Clubman models always have a higher percentage of manuals than the front-drive models, with differences ranging from 2% to 10%. The two-door Minis are typically the most likely to sell with a manual even for core models. In the convertible, the 6% of regular Coopers are manual while 30% of the Cooper S are. That nearly matches the JCW convertible. For the hardtop, the regular Cooper's manual take rate is 11% and the Cooper S model's is 17%. These numbers will probably drop in the short term, though. Mini announced that it's temporarily stopping imports of manual Minis due to some emissions calibration issues. After a few months, though, we expect the manual sales to bounce back.