China Steps Aside, US's Long-Time Ally Suddenly Becomes Trump's Enemy

Jakarta - China has been the primary target of the Donald Trump administration’s jumbo tariff regulations. However, it now appears that tariff threats are being intensified towards the United Kingdom, a long-time ally of the United States (US). Trump has threatened to impose high tariffs on the UK if the country does not repeal its digital services tax that targets US-based social media companies. The digital services tax introduced by the UK in 2020 will levy a 2% rate on revenues from several US social media giants in the country. Speaking to the media in the Oval Office on Thursday (23/4) local time, Trump openly revealed the high tariff threat. “We have been monitoring this, and we can easily impose high tariffs on the UK. They should be careful,” Trump said, quoted from The Guardian on Friday (24/4/2026). “If they do not repeal the [digital] tax, we will likely impose high tariffs on the UK,” he emphasised. The UK’s digital tax targets companies with revenues from digital activities exceeding £500 million (Rp11.6 trillion) globally, as well as £25 million (Rp581 billion) from users in the UK. This regulation has sparked tensions between the UK and the US. Trump views the rule as targeting established global companies. “The UK and other countries are doing this [imposing digital taxes] because they think they can easily get money. They want to take advantage of our country,” Trump stated. In the US-UK trade agreement signed in May 2025, the digital services tax remained unchanged despite being a negotiation point. When asked about the specifics of the high tariffs Trump would impose on the UK, he provided no details. Clearly, Trump stated that the tariffs would be higher than the UK’s digital tax. This latest statement adds to broader tensions in US-UK relations, which have deteriorated after UK Prime Minister Keir Starmer rejected UK involvement in the Middle East conflict. Earlier this month, Trump indicated that the US-UK trade deal signed last year could change at any time. This was stated in an interview with Sky News. Trump’s comments also come a few months after the US threatened tariffs and new export controls on countries that impose digital tax regulations targeting UK companies. Several European countries, such as France, Italy, and Spain, are known to have digital services taxes similar to the UK’s.