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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.

The cars of notorious dictators

It's good to be the king, at least until your people have had enough of you. Last week, we brought you famous presidential cars. This week, we're going to the opposite end of the political spectrum, looking at what history's mad men drove throughout their repressive and violent regimes. These dictators were absolutely powerful, and absolutely corrupt. More nightmares for their people than rulers, their iron-fisted control gave them the ability to satisfy any wild desire with nearly limitless funds. While they all splurged on luxury goods, cars were a particular passion of many dictators. Cars make a powerful statement to the public about wealth, status and control. It's how you are presented at ground level to your adoring masses or mortal enemies. A custom luxury car with plenty of armor plating reinforced the specialness and "otherness" of the ruler to friend and foe alike. Muammar Gaddafi, Libya, 1969 - 2011 Lybia's President for Life Muammar Gaddafi fancied himself not just a car enthusiast, but a car designer for the masses as well. He supposedly designed a car called the "Saroukh el-Jamahiriya" or Libyan Rocket. It had a 230-horsepower V6 and the nose and tail of a rocket. He was trying to produce a safer car. What makes it safe car? Tough to say. Not a lot was ever released it. Apparently the el-Jamahiriya did come with airbags and collapsible fenders in case of a collision. A spokesperson said "The invention of the safest car in the world is proof that the Libyan revolution is built on the happiness of man." We'll just have to take his word for it. When he wasn't designing his own cars, Gaddafi was ordering up custom rides, large and small. Besides a heavily armored BMW 7 Series and a Mercedes S-Class stretch limo, Gaddafi had this custom Fiat built at a cost of $260,000. The gold in the trim is real gold (of course) and comes with some touches that are pure Gaddafi. For instance, the Fiat badge was replaced with an outline of the continent of Africa, with Libya cut out in green. Rebels seized the Fiat and Gaddafi's other trappings of power after putting an end to Gaddafi's 42 years in control. Jean-Claude "Baby Doc" Duvalier, Haiti, 1971 - 1986 Jean-Claude "Baby Doc" Duvalier was the second-generation dictator of Hati from 1971 to 1986. He made life hell for his people for 15 long years, starting when his father died when he was just 19 years old. Imagine if Justin Beiber was given a tiny island nation to run.

Zero-emission zones are forcing Rolls-Royce to develop its first EV

Rolls-Royce confirmed its first series-produced electric car will debut before the end of 2020. The BMW-owned firm is pivoting toward electrification to give its customers access to city zero-emission zones. Instead of putting batteries in one of its existing models, the company will enter the EV segment with a new nameplate. Unverified reports claim the car will replace the Wraith and the Dawn, so it could arrive as a coupe and/or as a convertible, and Automotive News learned it will ride on Rolls-Royce's modular aluminum platform. It's too early for executives to provide technical specifications. Rolls-Royce could choose to borrow components from its parent company, or it could develop the technology on its own. Regardless, the brand stressed its customers aren't clamoring for a zero-emission options, but regulations are forcing Rolls to go electric. "There is no demand from customers, but we need to be in a position to sell them a car if legislation forbids them from driving a combustion-engined car into the center of a city," a spokesperson told Automotive News. Company CEO Torsten Muller-Otvos announced the model is currently being developed, and it's scheduled to make its debut "within this decade." He added an electric powertrain fits the brand's image perfectly, because it's silent and it delivers the mammoth amount of torque customers expect, whether they're driving or being driven. Batteries add weight, but no one buys a Rolls-Royce thinking they're getting a nimble, feather-light car. In the meantime, Rolls-Royce will continue fine-tuning its mighty V12 engine, which it anticipates will power most of the cars it builds until the end of the 2020s. And, don't expect it to release a plug-in hybrid model. It's skipping gasoline-electric technology and going straight from 12-cylinders to electric motors. Rolls-Royce has been on the fence about electrification for about a decade. It introduced an electric version of the last-generation Phantom named 102EX at the 2011 edition of the Geneva auto show, and it briefly considered giving the sedan the proverbial green light for production. It backpedaled when it realized the technology still had serious limitations, notably in terms of driving range, and that its customers weren't interested in going electric. Engineers tested hybrid prototypes in the 2010s, but they remained at the test mule stage.