Donald Trump has threatened the UK with a 100 per cent import tariff, citing Britain’s digital services tax on American social media firms.
The US president also stated this punitive measure would supersede any existing trade deal between the two nations.
Mr Trump had previously warned of such action unless the UK abandoned its 2 per cent levy on major US tech companies.
The tax applies to firms with global digital revenues exceeding £500 million, where over £25 million of that income is generated from British 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.”
Mr Trump made a similar threat in April, indicating that substantial tariffs could be imposed unless the country reverses its digital services tax on American technology firms.
The levy, implemented in 2020, applies a 2 per cent charge on the revenues of major US companies such as Apple, Alphabet’s Google, and Meta.
The measure has drawn criticism from both Mr Trump and his successor, Joe Biden.
Speaking in April, Mr Trump said: “We’ve been looking at it and we can meet that very easily by just putting a big tariff on the UK, so they better be careful.”
More to follow…
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