U.S. President Donald Trump said he may impose tariffs on the United Kingdom if it does not remove its digital services tax, which applies to revenues earned by large technology companies. The comments add to ongoing trade discussions between the two countries and highlight continued disagreement over digital taxation policies.
The UK introduced the digital services tax in 2020, applying a 2% levy on revenues generated from certain online services. The measure targets companies with global digital revenues above £500 million ($673 million) and more than £25 million derived from UK users. Several major U.S. technology firms fall within the scope of the tax.
Speaking to reporters from the Oval Office on Thursday, Trump said the United States could respond by introducing tariffs on UK goods if the tax remains in place. He added that such tariffs would likely match or exceed the value collected through the levy. According to Trump, the policy affects some of the world’s largest technology companies and has been a longstanding point of friction in bilateral trade relations.
Trump also said similar taxes introduced by other countries have been viewed by the United States as targeting American technology firms. He stated that governments implementing such measures believe they can generate additional revenue from U.S.-based companies.
The digital services tax remained unchanged under the UK–U.S. trade agreement reached in May 2025, although it was discussed during negotiations. Trump noted that trade terms can be revisited and suggested that tariff measures could be used as a response if the tax is not removed.
His latest remarks follow earlier U.S. warnings about potential tariffs or export controls affecting countries that adopt digital taxation or regulatory policies impacting American technology companies. Several European nations, including France, Italy, and Spain, have implemented similar digital services taxes.
In a previous statement, Trump said the United States would respond to digital taxes and related regulations that it views as discriminatory toward American technology firms. He added that unless such measures are removed, the U.S. would consider imposing additional tariffs on exports from affected countries.
The issue remains part of broader trade discussions between the United States and the United Kingdom, with both sides continuing to evaluate taxation, market access, and trade policy considerations.
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