US threatens to raise tariffs if UK does not scrap digital services tax

Moscow (ANTARA) - US President Donald Trump has threatened to impose high import tariffs on the UK if Prime Minister Keir Starmer’s government does not repeal the digital services tax.

Trump stated that the tax policy is seen as unfairly targeting US technology companies.

“We do not like it when they target American companies… If that tax is not repealed, we will likely impose major tariffs on the UK,” Trump told reporters.

He added that his administration is reviewing the tax, which is deemed to harm US tech giants such as Apple and Google.

Since 2020, the UK has imposed a 2% tax on large multinational companies that generate revenue from social media, search engines, and online marketplaces.

The tax applies to companies with global digital revenue exceeding £500 million (approximately Rp10 trillion) and at least £25 million (approximately Rp500 billion) from UK users.

Trump’s statement was made ahead of King Charles III’s visit to the United States next week.

Trump previously expressed confidence that the visit could help restore the special relationship between the two countries, which has recently experienced tensions.