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Trump Threatens Tariff Over UK's 2% Digital Tax

4/24/2026

22 2 Full Breakdown

Summary

Story summary

President Donald Trump warned that if Britain does not scrap its 2% digital services tax, the United States will impose a larger tariff.
The 2020 tax levies 2% on digital firms with global revenue over £500 million and UK revenue over £25 million, targeting Apple, Google and Meta.
Trump said the tariff threat ties to King Charles’s upcoming visit and that the tax remained unchanged in the May 2025 trade agreement.

History

Historical Context

In 2020, the UK introduced a 2% digital services tax (DST) targeting major tech firms like Apple and Google, generating £358 million in its first year. This move reflects ongoing global trade tensions reminiscent of the 1930 Smoot-Hawley Tariff Act, highlighting the complexities of international tax regulations and the potential for escalating tariffs that affect global economic relations.

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Story summary

President Donald Trump warned that if Britain does not scrap its 2% digital services tax, the United States will impose a larger tariff.
The 2020 tax levies 2% on digital firms with global revenue over £500 million and UK revenue over £25 million, targeting Apple, Google and Meta.
Trump said the tariff threat ties to King Charles’s upcoming visit and that the tax remained unchanged in the May 2025 trade agreement.

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