DONALD Trump has threatened “a big tariff” on the UK as he fumed over Britain’s tech tax.
The US president lashed out at the UK’s Digital Services Tax (DST), accusing it of unfairly “targeting” US companies.
US President Donald Trump threatened to hike tariffs on the UK if the tech tax is not scrapped Credit: Alamy
During a White House press briefing Trump said: “We don’t like it when they target American companies because basically you’re talking about our great American companies.
“We can meet that very easily by just putting a big tariff on the UK, so they better be careful.”
The DST is a 2 per cent levy on large US platforms operating in Britain.
Every year the tax rakes in around £800million for the UK government.
“They think they’re going to make an easy buck that’s why they’ve all taken advantage of our country”, Trump fumed.
“If they don’t drop the tax we’ll probably put a big tariff on the UK.”
Trump said he has an “obligation to protect” American companies.
He added: “That’s how they became great and they became great during my administration.
“We had the best economy in history in my first four years.”
Trump’s latest tirade comes amid already over Britain’s response to the crisis in Iran.
But it is not the first time the DST has caused a storm in the White House.
Introduced in 2020, the tax has been a point of contention for years with Washington repeatedly criticising it as punitive towards American firms.
In a post on Truth Social in August, Trump wrote: “Digital taxes, legislation, rules or regulations are all designed to harm, or discriminate against, American technology.”
Vowing to protect US firms, he declared: “I will impose substantial on that country’s exports to the USA, and institute export restrictions on our highly protected technology and chips.”
Downing Street moved to defuse tensions, with a spokesperson for insisting: “The US is our closest ally, and we’ll always talk to them about any issues.
“We’ve got a very constructive relationship with the US across many issues.”
But just months later Trump caused chaos when he threatened a 15 per cent global tariff rate.
The levy was dropped down to 10 per cent after the ruled the hiked tariffs were deemed illegal.
The British Chambers of Commerce said firms would be relieved at the lower rate.
William Bain, of the BCC, said: “While a new 10% , instead of the threatened 15%, will provide some relief, it shows how difficult it is for businesses to plan ahead.
“It is far from clear what will happen next and whether a higher tariff rate is still on the way.”
Mr Bain added: “The risk of further tariff pain to come is still real and the Government must do everything it can to prepare for the worst.”
The EU decided to delay its ratification of their trade deal with the US following the threat to hike levies to 15 per cent.
Trump said he has an ‘obligation to protect’ American companies Credit: AP
Eze Chidiebere Paul
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