US President Donald Trump has threatened to impose high tariffs on British goods if the UK does not drop its digital services tax on US technology companies.
The UK introduced the tax in 2020, imposing a 2% levy on revenues earned by several large US technology companies.
According to a report by The Guardian, the tax applies to companies with global digital revenues exceeding £500 million, including more than £25 million generated from UK users.
Speaking on Thursday (April 23), Trump said Washington has been examining the UK's digital services tax, noting that it targets some of the world's leading companies. He added that the UK and other countries or regions have adopted similar taxes in an attempt to generate easy revenue, while benefiting at the expense of the US.
Trump warned that the US could retaliate by imposing high tariffs, stating that Washington may adopt reciprocal measures, with counter-tariffs potentially far exceeding the taxes imposed by other countries.
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