🔥 A major trade dispute is brewing across the Atlantic! US President Donald Trump has issued a stark warning to the United Kingdom: scrap your digital services tax or face significant new tariffs. The threat, made in an interview with The Telegraph, escalates a long-running feud over how global tech giants are taxed.
💬 “I don’t like it when they target American companies,” Trump said, referring to the UK’s 2% levy on the British revenues of large tech firms like Apple, Google, and Meta. “We can meet that very easily by just putting a big tariff on the UK. So they better be careful,” he warned.
📊 The UK’s digital services tax (DST) is no small change. Fresh data shows it generated a whopping £944 million (around $1.3 billion) in the 2025-2026 fiscal year—a 17% jump from the year before. The British government insists the tax is fair and will stay until a global agreement is reached, arguing it ensures digital businesses pay their share where they operate.
🤝 This standoff is part of a bigger global puzzle. For years, the US and European governments have clashed over digital taxes. Washington sees them as unfairly singling out American tech champions, while European capitals argue they’re just making sure profits are taxed where they’re earned. With Trump’s “big tariff” threat now on the table, the future of US-UK trade relations is suddenly looking a lot more tense. 🚨
Reference(s):
cgtn.com
