US President Donald Trump has threatened to impose “a big tariff” on the United Kingdom amid escalating tensions over Britain’s Digital Services Tax.
Speaking during a White House press briefing, Trump criticised the levy, which applies a 2 per cent charge on large technology firms operating in the UK, many of which are American companies.
“We don’t like it when they target American companies because basically you’re talking about our great American companies,” he said. “We can meet that very easily by just putting a big tariff on the UK, so they better be careful.”
The tax, introduced in 2020, generates an estimated £800 million annually for the UK government but has long been a point of contention with Washington, which views it as discriminatory toward US tech firms.
Trump reiterated his stance, saying: “They think they’re going to make an easy buck that’s why they’ve all taken advantage of our country. If they don’t drop the tax we’ll probably put a big tariff on the UK.” He added that he has an “obligation to protect” American companies.
