Trump says he will ‘probably put a big tariff on the UK’ if it doesn’t drop digital services tax
Summary
President Donald Trump said he may put big tariffs on the UK if it does not stop its digital services tax on US tech companies. The UK’s digital services tax charges 2% on the revenues of large US digital firms from UK users. President Trump warned that the tariff would be equal to or higher than the tax amount.Key Facts
- The UK introduced a digital services tax in 2020 that charges 2% on certain digital companies’ revenues.
- The tax affects companies with global revenues over £500 million and UK revenues above £25 million.
- President Trump criticized the tax as unfair to US tech companies and threatened tariffs on UK goods.
- The UK-US trade deal in May 2025 did not change the digital services tax despite discussions.
- Trump said the tariff would match or exceed the revenue gained by the UK from the tax.
- The digital services tax has caused tension between the US and the UK, and other European countries also have similar taxes.
- Trump has said he will impose tariffs on countries that discriminate against American tech firms.
- This issue is part of broader strains in US-UK relations following disagreements over other international matters.
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