President Donald Trump has warned that the U.S. could impose "big" tariffs on British goods if the UK does not remove its digital services tax. Speaking to reporters at the White House on Thursday, Trump said Washington was ready to act in response to the levy on major American technology firms.
“We’ve been looking at it and we can meet that very easily by just putting a big tariff on the UK,” he said. “If they don’t drop the tax, we’ll probably put a big tariff on the UK.”
He added that any tariff would match or exceed the revenue raised by the tax. “What we’ll do is we’ll reciprocate by putting something on that’s equal or greater than what they’re doing,” he said.
The UK introduced the digital services tax in 2020. It applies a 2% charge on revenues generated in Britain by large digital firms with global earnings above £500 million, including companies such as Apple, Google and Meta.
The policy has been a long-standing point of disagreement between London and Washington. It has been criticised by both Donald Trump and former U.S. president Joe Biden.
Trump said the tax unfairly targets American businesses. “They think they’re going to make an easy buck,” he said. “That’s why they’ve all taken advantage of our country.”
Similar taxes have been introduced in several European countries, including France, Italy and Spain.
The issue remained unresolved in the UK-U.S. trade agreement agreed in 2025, where the tax was discussed but left unchanged.
Trump’s latest comments add to wider strains in relations between Washington and London. Earlier this month, he suggested that the terms of the trade deal “can always be changed”.
Differences have also emerged over foreign policy. Prime Minister Keir Starmer ruled out British involvement in recent military conflict in the Middle East, a position that has drawn criticism from Trump.
The remarks come ahead of a planned state visit to the United States by King Charles III, seen as a key moment for relations between the two countries.
The four-day trip is due to begin next week. The King, accompanied by Queen Camilla, is expected to hold a private meeting with Donald Trump at the White House, followed by a state dinner and an address to Congress.
The visit will also include stops in New York and Virginia, with events focused on cultural and economic ties between the two nations.
The trip coincides with the 250th anniversary of the United States’ declaration of independence from Britain. Officials say it is intended to highlight long-standing links between the countries, including defence and trade cooperation.
Trump described the King as “a brave man” and said he believed the visit could help strengthen ties. “I know him well, I’ve known him for years,” he said.
Diplomats say the visit is aimed at reinforcing broader relations between the two countries, which extend beyond current political disagreements.
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