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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.

Rolls-Royce is officially in the SUV business

This might be the most brand-appropriate announcement ever for a previously unthinkinable vehicle, complete with a press release titled like a royal edict. After saying a month ago that it would decide on building an mixed-terrain hauler by the end of the year, Rolls-Royce issued a press release entitled, "An Open Letter from the Chairman and Chief Executive of Rolls-Royce Motor Cars on the Subject of a New Rolls-Royce." Let's hold on a second while the sound of trumpets dies down. Nowhere among its 453 words will you find the acronym "SUV," nor the words "sport" or "utility." You will find talk of "an all-new Rolls-Royce," "a high-bodied car, with an all-new aluminum architecture," "a vehicle that can cross any terrain," and references to Lawrence of Arabia traversing mountain ranges and "the vastness of unexplored deserts" and the founders' "rigorous overland adventures," complete with sepia photos. And then there's this: "History sets our precedent and our future calls us to action." Let's hold on a second while the applause dies down. We don't know when we'll see it - Rolls-Royce says it plans to take its time getting it right, to create a vehicle that is "Effortless ... Everywhere." We would believe any date we read about, though; not even two years ago we were told a Rolls-Royce SUV hadn't even been discussed since such a vehicle couldn't fit into the brand ethos, not even a year ago the company's head designer had narrowed it down to "a shooting brake, not a crossover with a sloping roof. A proper SUV," with the Ghost platform for support and a speculated release date of 2017. If they brought a near-production-ready sample to the Frankfurt Motor Show this year, we wouldn't be surprised. We sincerely hope that, like the image, it comes with a man to shovel any obstacles out of the way. Gather round the dais and enjoy the press release below. It's a whole new world. Related Video: AN OPEN LETTER FROM THE CHAIRMAN AND THE CHIEF EXECUTIVE OF ROLLS-ROYCE MOTOR CARS ON THE SUBJECT OF A NEW ROLLS-ROYCE 18.02.2015 -- The launch of Phantom in 2003 marked the beginning of the renaissance of Rolls-Royce Motor Cars. Since then, we have set a new benchmark for what a super-luxury car should be – unique, hand-crafted, beautiful and rare. Often imitated, Phantom has never been equalled and continues to be hailed as 'The Best Car in the World' by our customers and media alike.

Watch the Rolls-Royce Phantom live reveal

Watch the live reveal of the all-new eighth-generation Rolls-Royce Phantom. For decades, the Phantom has defined what it means to be a luxury car. As with other Phantoms, look for metal, wood, and enough leather to support a small farming operation for years. Rolls-Royce Luxury Videos Sedan rolls-royce phantom