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Trump Says He May Impose Tariff on UK Over Digital Services Tax

Trump said Britain’s 2% digital services tax raised more than £800 million last year and unfairly targets U.S. tech firms.

  • On Thursday, President Donald Trump threatened a "big tariff" on the UK if it does not drop its 2% digital services tax targeting American tech firms.
  • Introduced in 2020, the UK's 2% levy applies to companies with worldwide revenues exceeding £500 million, yet remained unchanged under the 2025 UK-US trade deal.
  • Trump argued the laws target "top companies in the world," claiming the UK is attempting to make an "easy buck" at the expense of the United States.
  • The president vowed to "reciprocate by putting something on that's equal or greater than what they're doing" if the government maintains the digital services legislation.
  • Ahead of King Charles' visit next week, Trump suggested the monarch could help repair the strained relationship between Washington and the British government.
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Reuters broke the news in United Kingdom on Thursday, April 23, 2026.
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