Trump warns UK of sweeping tariffs over digital tax dispute

Washington: U.S. President Donald Trump said he would impose significant tariffs on Britain if Prime Minister Keir Starmer does not scrap the United Kingdom’s digital services tax, according to an interview published by The Telegraph on Friday, escalating tensions over a levy Washington argues unfairly targets American technology firms.

Trump said the United States could “put a big tariff on the UK” if London maintains the tax, which was introduced in 2020 and applies a 2% levy on revenues generated by large digital companies operating in Britain.

The measure affects major U.S.-based firms including Apple, Alphabet’s Google and Meta.“I don’t like it when they target American companies, because basically, you’re talking about our great American companies,” Trump told The Telegraph, adding that Washington could respond swiftly through trade measures.

“If they don’t drop the tax, we’ll probably put a big tariff on the UK.”The digital services tax has been a longstanding point of friction between Washington and London, drawing criticism not only from Trump but also from his predecessor, Democrat Joe Biden, who similarly argued that such levies disproportionately impact U.S. technology giants.

The dispute underscores broader transatlantic disagreements over how to tax multinational digital corporations, particularly those with significant cross-border revenues but limited physical presence in foreign markets.

Britain has defended the tax as a temporary measure aimed at ensuring fair contributions from large tech firms operating within its jurisdiction.

Trump’s remarks come ahead of a scheduled visit by Britain’s King Charles to the United States next week, adding a diplomatic dimension to the trade tensions at a time when both countries have sought to maintain close economic ties.