US President Donald Trump has threatened to impose hefty tariffs on the UK if the British government does not drop its digital services tax (DST), The Telegraph reported on Friday.
In an interview with the newspaper, Trump viewed the tax as unfairly targeting major US technology companies such as Apple, Google and Meta.
The report said the DST places a 2% charge on Britain’s revenues of large search engines, social media platforms and online marketplaces.
Drop the tax, or else …
“I don’t like it when they target American companies, because basically, you’re talking about our great American companies, whether we like those companies that don’t like them, they’re American companies and the top companies in the world,” Trump was quoted as saying.
“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,” he said.
Global tax agreement target
The report said figures published on Thursday by the revenue and customs department showed that Britain’s digital services tax generated £944-million (about $1.3 billion) in the 2025-2026 fiscal year, up 17% from the previous fiscal year. Official forecasts cited by the newspaper said the tax could raise £1.4-billion pounds annually by 2030.
According to the report, Britain has insisted that the tax will remain in place until a global tax agreement is reached, saying it ensures that digital businesses make a contribution reflecting their economic activities in the country.
In recent years, disputes between the US and Europe over digital services taxes have continued, with Washington arguing that such levies unfairly target major US technology companies, while European governments argue they are meant to ensure digital firms pay taxes where they generate revenue.
- US President Donald Trump threatened to impose heavy tariffs on the UK if it does not repeal its digital services tax (DST).
- The UK’s DST imposes a 2% tax on revenues of large digital companies like Apple, Google, and Meta from search engines, social media, and online marketplaces.
- Trump criticized the tax as unfairly targeting leading American tech firms and warned of retaliatory tariffs on the UK.
- The DST generated £944 million ($1.3 billion) in the 2025-2026 fiscal year, with projections of £1.4 billion annually by 2030.
- The UK plans to keep the DST until a global tax agreement is reached, emphasizing the need for digital firms to contribute taxes where they earn revenue.
US President Donald Trump has threatened to impose hefty tariffs on the UK if the
In an interview with the newspaper, Trump viewed the tax as unfairly targeting major US technology companies such as Apple, Google and Meta.
"I don't like it when they target American companies, because basically, you're talking about our great American companies, whether we like those companies that don't like them, they're American companies and the top companies in the world," Trump was quoted as saying.
"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," he said.
In recent years, disputes between the US and Europe over digital services taxes have continued, with
