Trump warns of ‘big tariff’ if UK doesn’t drop digital services tax
U.S. President Donald Trump during a healthcare affordability event at the Oval Office of the White House in Washington, DC, United States, on Thursday, April 23, 2026.
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US President Donald Trump issued a stern warning to the UK, threatening to impose high tariffs on the country unless it reduces the digital services tax on US technology companies.
The tax, first introduced in 2020, is a 2% tax on the revenue of search engines, social media services and online marketplaces that derive value from users in the UK. This includes several US companies Alphabetis Google, Meta And Apple.
Speaking in the Oval Office on Thursday, Trump criticized those he said wanted to “make easy money” by targeting American companies.
“We’re looking into this, and we could easily cover that by putting a big tariff on the UK, so they better be careful,” Trump said.
“If they don’t reduce the duty, we’ll probably put a huge tariff on the UK,” he added, without giving a specific figure.
CNBC has contacted the UK Department of Trade and Trade and is awaiting a response.
Britain’s ruling Labor government has previously defended the tax, viewing it as an important fiscal measure. increasing incomes Around £800 million ($1.08 billion) in the 2024-2025 financial year.
Trump told Sky News earlier in the month that the terms of the deal “can always be changed”
Trump’s comments follow a series of critical public statements about British Prime Minister Keir Starmer and King George III in recent weeks. It has reignited trans-Atlantic trade tensions ahead of Charles and Queen Camilla’s four-day US state visit.
The king and queen are scheduled to travel to the United States on Monday and are expected to meet Trump at the White House.
