Politics
Apr 24, 2026
Trump Threatens Major Tariff on UK Over Digital Services Tax
President Donald Trump warned that the United States could levy a substantial tariff on the United …
Donald Trump warned Thursday that the United States could impose a “big tariff” on the United Kingdom if London does not abandon its 2% digital services tax targeting American tech firms.
Oval Office Warning Highlights New Trade Leverage
Speaking to reporters from the Oval Office, the president said the U.S. “can meet that very easily by just putting a big tariff on the UK, so they better be careful.” He added, “If they don’t drop the tax, we’ll probably put a big tariff on the UK.” The comment follows earlier remarks that the terms of the 2025 UK‑US trade agreement could be renegotiated.
Financial Stakes: 2% Levy and Revenue Thresholds
2% levy on the revenues of several major U.S. tech companies.
Applies to firms whose worldwide digital revenues exceed £500 million ($673 million).
At least £25 million of those revenues must come from UK users.
Impact on US‑UK Trade and Diplomatic Relations
The digital services tax has been a persistent source of friction since its 2020 introduction. Although the tax remained unchanged under the 2025 trade deal, Trump’s threat signals a willingness to use tariffs as retaliation, echoing similar U.S. actions against France, Italy and Spain. The remarks arrive amid broader strains, including Prime Minister Keir Starmer’s decision to keep the UK out of Middle‑East conflicts.
Future Outlook: Possible Tariff Levels and Negotiation Paths
Trump indicated any tariff would be “more than what they’re getting” from the levy, suggesting a rate equal to or higher than 2%. Analysts predict a rapid diplomatic push from both sides to avoid a tariff escalation that could disrupt trans‑Atlantic supply chains and affect the tech sector’s market access. The next few weeks are likely to see intensified back‑channel talks or a formal amendment to the trade agreement.
#Donald Trump
#United Kingdom
#Digital Services Tax
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