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Trump threatens bigger U.S. tariff over UK tax

4/24/2026

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Summary

Story summary

President Donald Trump warned that keeping United Kingdom’s 2% digital services tax will trigger a U.S. tariff larger than the tax.
He said this at a White House event before King Charles’s visit, urging the monarch to help repair U.S.–U.K. ties.
The 2020 tax, which levies 2% on U.S. tech firms such as Apple, Google and Meta, has led the United States to warn France, Italy and Spain of tariffs.

History

Historical Context

In 2020, the UK introduced a 2% digital services tax (DST) aimed at major U.S. tech companies, prompting retaliatory tariff threats from the U.S. government. This move reflects a broader trend, as by 2024, eighteen countries had enacted similar taxes, highlighting ongoing tensions in international trade and digital taxation that could reshape future economic negotiations.

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Story summary

President Donald Trump warned that keeping United Kingdom’s 2% digital services tax will trigger a U.S. tariff larger than the tax.
He said this at a White House event before King Charles’s visit, urging the monarch to help repair U.S.–U.K. ties.
The 2020 tax, which levies 2% on U.S. tech firms such as Apple, Google and Meta, has led the United States to warn France, Italy and Spain of tariffs.

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