Britain is finally finding out how little power it has to dictate terms to others

Editorial: In every trade deal it now needs to negotiate, the UK has more to lose than the other side. As Jaguar Land Rover sheds 500 jobs, that’s a harsh reality to face

The meaning could not be clearer, the timing scarcely worse. Asked at the World Economic Forum in Davos about the UK’s proposed “digital tax”, the US Treasury secretary, Steve Mnuchin, made it plain that America would not tolerate such a move: “If people want to just arbitrarily put taxes on our digital companies, we’ll consider arbitrarily putting taxes on car companies.”

Though not directly connected, the unveiled threat came just as Jaguar Land Rover announced 500 job losses at its Halewood plant. That development highlights the extent of the jeopardy facing what remains of British manufacturing industry. If America does indeed slap a tax on imports of British-made vehicles, especially the Jaguars, Land Rovers and Range Rovers that find such a ready market in America, then there will be many more job losses coming down the line.

For good measure, Mr Mnuchin also made little secret of his displeasure that the chancellor, Sajid Javid, had said elsewhere at the Davos meeting that Britain would “prioritise” an EU trade deal over one with the US.