Donald Trump has threatened to impose tariffs on the UK if it doesn’t scrap its digital companies tax on US tech giants, warning he’ll put a ‘huge tariff’ on Britain if the levy stays in place.
Donald Trump has reignited his commerce battle with the UK (Picture: WILL OLIVER/POOL/EPA/Shutterstock)
US President Donald Trump has threatened to impose tariffs on the UK ought to it refuse to abolish its digital companies tax on American social media giants.
The digital companies tax, launched in 2020, locations a 2% levy on the revenues of a number of main US tech companies. Talking to reporters from the Oval Workplace on Thursday, Mr Trump stated: “We have been it and we are able to meet that very simply by simply placing a giant tariff on the UK, in order that they higher watch out.
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“If they do not drop the tax, we’ll most likely put a giant tariff on the UK.”
The tax applies to firms whose international revenues from digital actions surpass £500 million, with over £25 million of these revenues derived from UK customers. Mr Trump claimed the legal guidelines, which have lengthy been a supply of rigidity in UK-US relations, focused “high firms on the planet”.
He stated: “The UK did it, a few different folks did it. They suppose they’ll make a simple buck, that is why they’ve all taken benefit of our nation.”
The digital companies tax remained unchanged beneath the UK–US commerce deal agreed in Might 2025, regardless of being some extent of debate. When requested how substantial the tariff could be, the president stated it will be “greater than what they’re getting” from the levy. “What we’ll do is we’ll reciprocate by placing one thing on that is equal or larger than what they’re doing,” he stated. The remarks add to the rising pressure on UK-US relations, which have deteriorated additional following Sir Keir Starmer’s refusal to commit Britain to involvement within the Center East battle.
Earlier this month, Mr Trump hinted that the phrases of the UK-US commerce settlement brokered final 12 months “can all the time be modified” throughout an interview with Sky Information.
Addressing MPs at Prime Minister’s Questions within the Home of Commons, Sir Keir spoke candidly concerning the strain being utilized by the US over the Iran battle. He instructed MPs: “My place on the Iran battle has been clear from the beginning. We’re not going to get dragged into this battle. It isn’t our battle.
“Numerous strain has been utilized to me to take a special course, and that strain included what occurred final night time. I am not going to alter my thoughts. I am not going to yield. It isn’t in our nationwide curiosity to hitch this battle, and we is not going to achieve this. I do know the place I stand.”
Mr Trump’s feedback come a number of months after related US threats to impose recent tariffs and export controls on nations working digital taxes or laws that affect American tech giants. A number of European international locations, together with France, Italy and Spain, at present function a digital companies tax. In a publish on Reality Social from August 2025, Mr Trump declared he would “stand as much as international locations that assault our unimaginable American Tech Corporations”. “Digital Taxes, Digital Providers Laws, and Digital Markets Rules are all designed to hurt, or discriminate in opposition to, American Expertise,” he wrote. “This should finish,” he declared, pledging that “except these discriminatory actions are eliminated”, he would “impose substantial further tariffs” on the exports of offending nations to the US.
Downing Avenue has been contacted for remark by PA Media.
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