Trump Announces 100% Tariff Threat Over Digital Services Tax
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 said the move would supersede Britain’s existing trade deal.
Mr Trump had previously raised the specter 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.
Revenue Raised by the Digital Services Tax
According to a 2025 Treasury review, the levy raised more than £800 million in 2024–25, up from £678 million in 2023–24. The tax has been a point of contention between the UK and US, with American tech firms arguing it unfairly targets them.
Trump's Statement on Truth Social
Writing on his Truth Social 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.”
Potential Impact on UK-US Trade Relations
The threat raises tensions between the two allies, as the UK has been seeking a post-Brexit trade deal with the US. A 100% tariff would effectively make UK goods prohibitively expensive in the American market, potentially harming British exporters. The digital services tax has been a key revenue source for the UK government, but the threat could force a reevaluation of the policy.
