Trump targets UK with tariff over US tech company tax

US president warns of trade retaliation over UK’s 2% digital services tax

The South African Revenue Service will send you an SMS in August to check your tax auto-assessment. PHOTO: Phonlawat Chaicheevinlikit 123RF
Donald Trump has threatened the UK with tariffs over digital tax on US tech giants. Stock photo. (Phonlawat Chaicheevinlikit 123RF )

US President Donald Trump says he will impose tariffs on Britain if Prime Minister Keir Starmer does not drop the digital service tax, The Telegraph reported on Friday, citing an interview with the president.

Trump told The Telegraph he would “put a big tariff on the UK” if it did not drop its tax, which is viewed as unfairly targeting US tech companies.

The UK rolled out its 2% digital services tax in 2020, a move that has been criticised by Trump and his predecessor, Democrat Joe Biden. The digital service tax targets companies like Apple, Alphabet’s Google and Meta.

“I don’t like it when they target American companies, because basically you’re talking about our great American companies ... and the top companies in the world,” Trump said.

“We’ve been looking at it and 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.”

Trump’s comments come ahead of a visit by Britain’s King Charles to the US, next week.

Reuters


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