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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 adds limited-edition Coral Red model to 2021 Hardtop line-up

Mini stylists took a trip to the design well and came back with a limited-edition model named Coral Red inspired by the brand's heritage. Offered with two or four doors, it's scheduled to arrive in showrooms this month. As its name clearly implies, the Coral Red edition primarily stands out from the Cooper S it's based on with Coral Red Metallic paint borrowed from the Clubman's palette. Black paint on the door mirrors and on the roof adds a touch of contrast. Mini also added 17-inch Rail Spoke wheels, LED lights at both ends, plus a long list of piano black trim pieces including the headlight bezels, the door handles, and the emblems. Photos of the interior haven't been published yet, but the BMW-owned firm noted the Carbon Red edition gains additional piano black trim in the cabin. It also receives black leatherette upholstery. Mini made no mechanical changes, so power for the Coral Red comes from the same 2.0-liter four-cylinder engine as the Cooper S. It's turbocharged to deliver 189 horsepower at 5,000 rpm and 207 pound-feet of torque at 1,350 rpm, and it once again spins the front wheels via a six-speed manual transmission. Alternatively, buyers who want two pedals can order a seven-speed dual-clutch automatic at extra cost. Approximately 300 examples of the Coral Red have been earmarked for the American market. Pricing starts at $34,125 for the two-door and $35,370 for the four-door, figures that include a mandatory $850 destination charge. In comparison, the standard Cooper S costs $28,100 with two doors and $29,100 with four. Why Coral? Although the pink-ish Coral Red color comes from the Clubman, the first Mini to wear something like it was the 1100 Special model introduced in 1979 to celebrate the Mini's 20th anniversary. It was one of the first in a shockingly long line of limited-edition variants released largely to hide the fact that British Leyland (and, later, the Rover Group) either didn't know how to replace the original Mini or didn't have the money required to fund the project, depending on the era, market conditions, and who was in charge of either company at a given time. Sold exclusively in England, the 1100 Special was available in two metallic colors named Silver Grey (shown above) and Rose, respectively; the latter was close to 2020's Coral Red hue. Silver cars featured a black vinyl roof, while Rose cars were topped with beige vinyl.

Meet Vini, the V8-powered second-generation Mini Hardtop

There are several ways to extract horsepower from a Mini Hardtop, and most are far more straight-forward than squeezing a V8 engine under the clamshell hood. And yet, at the request of a client, England-based EDM Racing is well into the process of doubling the retro-styled hatchback's cylinder count while making it rear-wheel drive. Amusingly called Vini, the V8-powered Mini started life as a 2007 Cooper S. It had a little over 100,000 miles on its odometer when David Power, the managing director of suspension bushing expert Powerflex, instructed EDM Racing to prepare it for an improbable engine swap. As mechanics stripped it to the bare metal, Power sourced a 4.0-liter, 415-horsepower V8 and a matching seven-speed automatic transmission from an E92-generation BMW M3 and began figuring out how to make it fit into a city-friendly hatchback delivered new with a 172-horsepower, 1.6-liter four-cylinder engine. Installing the new drivetrain directly behind the front seats would have likely been the easiest solution from a packaging standpoint, but the team decided to keep the front-engined layout. The conversion consequently required chopping out significant chunks of the Hardtop's firewall and floor, so EDM Racing started by designing and welding in a roll cage to maintain the car's structural integrity. The firm then installed modified front and rear subframes from a Subaru Impreza to keep the four wheels in their original position, or as close to it as possible. Power stressed he wants Vini to look nearly stock, especially when it comes to its track width, meaning punching out the wheel arches Renault 5 Turbo-style was out of the question.  The V8 fits surprisingly well in the Mini's engine bay, and it keeps the car's weight distribution in check. Power originally considered using a Subaru-built flat-four or a straight-six from an earlier M3, but both would have put too much weight ahead of the front wheels. Installing the automatic transmission was more difficult, however. "Making it all work in an OEM fashion will be a challenge for sure, but no more so than the most galling part of the project so far: Chopping out a transmission tunnel wide enough to accept the Getrag. I was aware of the dangers associated with cutting too much away and removing integral strength from the shell in the process, hence why we tackled the job in set stages and with the cage [installed]," EDM Racing's Elliott Dunmore explained.