Donald Trump threatens 100% tariff on UK over digital tax on US tech firms

Nick Lester, Press Association US Editor in Washington DC

Donald Trump has threatened to slap a 100% import tariff on the UK over its digital services tax on American social media firms.

The US president also said it would supercede Britain’s existing trade deal.

Mr Trump had previously raised the spectre of such a move unless Britain dropped the 2% levy on the revenues of several major US tech companies.

The tax targets companies whose worldwide revenues from digital activities exceed £500 million, with more than £25 million of the revenue from UK users.

According to a 2025 Treasury review, the levy raised more than £800 million in 2024–25, up from £678 million in 2023–24.

Writing on his Truth Social social media platform, Mr Trump said: “Numerous European Countries have been discussing the imminent implementation of a Digital Services Tax on American Companies.

“Some of these Countries are close to actually doing this.

“Please let this statement serve to represent that any Country that imposes such a Tax will immediately be met with a 100% TARIFF on any and all Goods sent to the United States of America.

“This TARIFF will supersede Trade Deals made with the Country, whether implemented, signed, or not. Additionally, the 100% TARIFF will be immediately imposed, if they proceed.”