Trump Threatens Big Tariff On UK Over Tech Tax

Donald Trump has threatened to slap extra tariffs on UK goods unless the government drops its plans for a digital services tax on tech giants.

The US president accused the government of “targeting American companies” and said they “better be careful” or face the consequences.

Ministers hope to raise around £5 billion over the next five years from the digital services tax, which imposes a 2% levy on the revenues of search engines, social media services and online marketplaces operating in the UK.

The White House has previously lobbied the government to reduce or abolish the tax as part of trade discussions between America and Britain.

Asked about the tax on Thursday, Trump accused the UK of trying to “make an easy buck” from American tech firms.

He said: “We don’t like it when they target American companies, because basically you’re talking about our great American companies.

“Whether we like those companies or don’t like them, they’re American companies. They’re top companies in the world.

“We’ve been looking at it. The UK did it, a couple of other people did it. They think they’re gonna make an easy buck, that’s why they’ve all taken advantage of our country.

“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.

“They shouldn’t be doing that. It’s really targeting great companies, but they’re our companies. It’s like us targeting their companies, which we could do very easily.

“But you don’t have great companies like that. It’s not fair. I have an obligation to protect our companies – that’s how they became great.”

A spokesman for Keir Starmer hit back at the president and insisted the government’s policy would not change.

He said: “It is a hugely important tax in making sure that those businesses continue to pay their fair share. It is a fair and proportionate approach to taxing business activities in the UK.”

Trump’s comments, which come ahead of a state visit to America next week by King Charles, are further evidence of the decline in relations between the two governments in Washington and London.

The president is furious at the prime minister’s refusal to support the war in Iran, and has repeatedly criticised the prime minister since the conflict began nearly two months ago.

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