Trump's "New War" Threat: Planning to Drop Tariff Bombs on the UK

US President Donald Trump has issued a threat of imposing high tariffs on the UK. The threat was made in response to the UK’s digital services tax policy. The tax in question is a 2% levy on the revenue from search engines, social media services, and online marketplaces that derive value from users in the UK. This includes several US companies such as Alphabet, Google, Meta, and Apple. The tax has been introduced since 2020. Trump’s stern warning also criticised what he called easy profiteering by targeting American companies. “We have considered it, and we can meet it very easily just by imposing large tariffs on the UK, so they had better be careful,” Trump said, quoted from CNBC International, Saturday (25/4/2025). “If they do not lower that tax, we may impose high tariffs on the UK,” he added, without specifying the amount of the tariffs. On the other hand, the ruling Labour Party government in the UK previously supported the tax as an important fiscal step. Given that the tax has successfully increased revenue by around £800 million ($1.08 billion) in the 2024-2025 financial year.