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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.

Carfection looks for the ultimate pocket rocket

If there's one thing we love, it's a good showdown. Especially when it's on video, done by some Englishmen, and involving some manner of performance machinery. Like this latest clip, for example, from Carfection. The team formerly known as Xcar have assembled three very compelling supermini hot hatches: two we can get on our side of the pond, and one we can't. One American, one Frenchman, and one Brit. One cheap, one expensive, and one somewhere in between. They all pack turbo fours, of course, but placed in entirely different packages. There's the evergreen favorite Ford Fiesta ST, the Renault Clio RS 220 Trophy that should have the rest licked, and the retro rocket that is the Mini JCW. And there's only one way to find out which is the best. It's a tough contest, to be sure, but lest you think it all comes down to specifications or which one's the newest, you'll want to think again. Because when it comes to hot hatches, all the electronic gizmos and power boosts in the world can't show up a perfectly dialed-in chassis that lets you hug the curves and feel like you're going a lot faster than you actually are. But don't take our word for it – see what our British friends have to say about it in the Queen's English in the seventeen-minute clip above. Related Video:

The Mini John Cooper Works Rally is set for Dakar

In recent years, there have been convincing Minis tailored for rallying: Dakar wins were accumulated with gusto. Now there is a new version for 2017, named the Mini John Cooper Works Rally. Its debut will be the 2017 Dakar Rally running through Bolivia, Paraguay, and Argentina. The new rally car has been built with experience gathered from rallying the earlier Mini All4 Racing, and it's based on the Countryman. Key areas reworked were the aerodynamics and the weight distribution to enable a lower center of gravity. As X-raid (Mini's motorsports partner) CEO Sven Quandt puts it: "The center of gravity has gone down substantially – we placed about 50 kilos [110 pounds] downwards by some 50 centimeters [19.7 inches] in the center of the car, which helps the handling and makes the car much more comfortable over all types of terrain, and aids the handling on a rally track with lots of corners." There is a new chassis frame, and the powertrain benefits from an updated engine mapping and thermal management. The interior has also been redone. Speaking of the powertrain, the Cooper Works Rally runs a 3.0-liter straight six from BMW's turbodiesel portfolio. In this guise, the TwinPower unit produces 340 horsepower at 3,250 rpm and a very respectable 590 lb ft of torque from 1,850 rpm. The retained ALL4 four-wheel-drive system has a six-speed SADEV sequential gearbox, together with lockable, oil-cooled Xtrac diffs with a central SADEV unit. The 2017 Dakar Rally runs from January 2-14. Related Video: