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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.

New Mini Cooper only just now being delivered due to EPA certification

The Mini brand and its products have typically been a runaway success for BMW, but sales of the retro hatchback dropped a drastic 20.5 percent last month, and have been doing such pretty much all year.
The reason, according to Jalopnik, is that the new model has been held up due to EPA certification. Mini told our compatriots, "Sales have dropped because our supply has been so limited. MY 2015 Mini Hardtops have also not been able to go on sale pending the final results of federal fuel economy certification."
Mini goes on to clarify that "as of October 1st, three out of the four 2015 Mini Hardtop 2 door models, the Cooper with manual transmission, the Cooper with automatic transmission, and the Cooper S with manual transmission, have been released for retail sales and deliveries."

First Mini John Cooper Works prototype spied

The highlight of Mini's 2014 Detroit Auto Show stand was the arrival of the John Cooper Works Concept, a sportier version of the three-door hatch that presages the next JCW model on the new platform. Now, we have our first images of the production car undergoing winter testing way up north in Sweden.
Really, the Mini camouflage can't hide what this car is. Between the JCW-branded brake calipers and extra intakes in the front fascia, it's fairly easy to see that this is the sportier version of the car our own Jeremy Korzeniewski wrote about last week. We're expecting the JCW variant to pack a fair bit more firepower than the three-cylinder Cooper he tested, of course. Rumors have circulated that the hottest Mini model could jump to 230 horsepower, up from the current, non-GP car's 208.
There are a number of style features missing here, and while it's entirely possible we'll see things like the JCW Concept's diffuser and side gills arrive when this car is shown in production form (or even further along in testing), their absence in these spy photos is telling. We certainly think this car will become the production JCW Hardtop, but there may be another explanation. The lack of certain aesthetic features means this could be a test of the JCW Engine Kit, which in past Minis slotted in between the standard Mini Cooper S and the factory Works car. We'll admit, it's a long-shot, but there is precedent for it - the JCW Tuning Kit arrived a year before the factory model in the last-generation car. The same reasoning could be used to explain the presence of the JCW-branded brakes, which have been another well-known Mini accessory over the years.