It comes amid strains in relations between the two countries
The UK was back on Donald Trump’s mind as he threatened ‘a big tariff’ in retaliation to a digital services tax introduced by Westminster six years ago. The tax, which has been enforced since 2020, imposes a two per cent levy on the revenues of several major US tech companies – including social media firms.
But amid strains in relations between the two countries during the Middle East war, Mr Trump raised the issue with journalists at the Oval Office on Thursday (April 23). He told reporters: “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. If they don’t drop the tax, we’ll probably put a big tariff on the UK.”
The tax targets companies whose worldwide revenues from digital activities exceed £500 million, with more than £25 million of the revenue from UK users. According to a 2025 Treasury review, the levy raised more than £800 million in 2024–25, up from £678 million in 2023–24.
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Mr Trump argued the laws, which have long been a source of tension in UK-US relations, targeted ‘top companies in the world’. “The UK did it, a couple of other people did it,” he said. “They think they’re going to make an easy buck, that’s why they’ve all taken advantage of our country.”
The digital services tax went unchanged under the UK–US trade deal agreed in May 2025, despite being a point of discussion. Asked how high the tariff would be, the president said it would be ‘more than what they’re getting’ from the levy.
“What we’ll do is we’ll reciprocate by putting something on that’s equal or greater than what they’re doing,” he said. The latest remarks add to wider strains in UK-US relations, which have deteriorated after Sir Keir Starmer ruled out British involvement in the conflict in the Middle East.
Mr Trump’s comments on tariffs come months after similar US threats to impose new tariffs and export controls on countries with digital taxes or regulations affecting American tech giants. A number of European countries, like France, Italy and Spain, have a digital services tax.
In a post on Truth Social from August 2025, Mr Trump said he would ‘stand up to countries that attack our incredible American Tech Companies’. “Digital Taxes, Digital Services Legislation, and Digital Markets Regulations are all designed to harm, or discriminate against, American Technology,” he wrote.
“This must end,” he said and vowed that ‘unless these discriminatory actions are removed’, he would ‘impose substantial additional tariffs’ on the offending nation’s exports to the US. Press Association approached Downing Street for comment.
Earlier this month, Mr Trump suggested the terms of the UK-US trade agreement brokered last year ‘can always be changed’ in an interview with Sky News. Speaking at Prime Minister’s Questions in the House of Commons, Sir Keir addressed pressure from the US over the Iran war.
He told MPs: “My position on the Iran war has been clear from the start. We’re not going to get dragged into this war. It is not our war.
“A lot of pressure has been applied to me to take a different course, and that pressure included what happened last night. I’m not going to change my mind. I’m not going to yield. It is not in our national interest to join this war, and we will not do so. I know where I stand.”
Aim at Prince Harry and rules out nuclear attack on Iran
Mr Trump also took aim at Prince Harry speaking to journalists in the Oval Office.
Asked about Harry’s comments calling on him to do more to bring the war to an end, Trump initially said: “How’s he doing? How’s his wife? Please give her my regards, OK?”
He went on: “I don’t know. I know one thing, Prince Harry is not speaking for the UK, that’s for sure. I think I’m speaking for the UK more than Prince Harry, that’s for sure. But thank him for his advice.”
Meanwhile, Nigel Farage has admitted he is ‘starting to worry slightly’ about Mr Trump’s judgement amid the war in Iran. Admitting his ‘friend’ might not be ‘everyone’s cup of tea’, the Reform leader told the Mail: “I do, as a friend, worry slightly about his judgment on this, yes. I do. It will be a terribly sad end to an amazing political career if the man that was always anti-war in the end gets (brought) down by this – I struggle to understand it.”
On Thursday, Trump ruled out using nuclear weapons in Iran, saying the mere question was “stupid”.
Asked by a female reporter whether he would consider it, Trump reacted angrily, barking: “No. Why would I need it? Why would a stupid question like that be asked? Why would I use a nuclear weapon when I’ve totally and in a very conventional way decimated them without it. No I wouldn’t use it. A nuclear weapon should never be allowed to be used by anyone.

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