U.S. President Donald Trump has threatened to impose tariffs on Britain if Prime Minister Keir Starmer does not drop the digital service tax, which is viewed as unfairly targeting American tech companies like Apple, Alphabet’s Google, and Meta.
Key Takeaways
U.S. President Donald Trump has threatened to impose tariffs on the UK if it does not drop its digital services tax targeting U.S. tech companies.
- Trump threatens 'big tariff' on UK over digital service tax
- Digital service tax targets US tech giants like Apple, Google, and Meta
- Tax imposes a 2% levy on revenues from UK users
- King Charles III's visit to the U.S. next week adds to diplomatic tensions
According to The Telegraph, Trump told reporters from the Oval Office on Thursday that he would “put a big tariff on the UK” if it did not drop its 2% digital services tax. The tax targets companies whose worldwide revenues from digital activities exceed £500m ($673m), with more than £25m of those revenues coming from UK users.
The digital service tax, introduced in 2020, has been criticized by both Trump and his predecessor, Democrat Joe Biden. The tax went unchanged under the UK-US trade deal agreed upon in May 2025, despite being a point of discussion. Speaking to reporters on Thursday, President Donald Trump said: “We’ve been looking at it and we can meet that very easily by just putting a big tariff on the UK, so they better be careful.
Trump argued that the laws targeted “top companies in the world.” The latest remarks add to wider strains in US-UK relations, which have deteriorated after Sir Keir Starmer ruled out UK involvement in the conflict in the Middle East. Earlier this month, Trump suggested the terms of the UK-US trade agreement brokered last year “can always be changed” in an interview with Sky News.
Trump’s comments come ahead of a visit by Britain's King Charles III to the U.S., next week. The king and queen are scheduled to travel to the U.S. on Monday and are expected to meet Trump at the White House. This adds further tension as publicly critical remarks about Prime Minister Keir Starmer have been made in recent weeks.
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