Trump warns of UK tariffs if digital services tax stays, in Telegraph interview
Donald Trump says he would slap a substantial tariff on the United Kingdom if London does not scrap its digital services tax (DST), arguing the levy unfairly targets American tech giants such as Apple, Google and Meta. The remark came as the Treasury disclosed DST receipts for the previous year and as talks about the tax’s fate continue to stoke tension with Washington.
The DST targets the UK arm of large digital platforms that generate revenue from services like search, social networks and online marketplaces. The policy has become a key revenue stream for the Treasury, with projections suggesting it could reach about £1.4 billion per year by 2030, up from roughly £380 million when it was first introduced around four years ago. HM Revenue & Customs reported DST tax receipts of £944 million for 2025-26, a 17% rise on the previous year and higher than the £866 million raised by France’s DST in 2024. UK officials say the tax ensures digital businesses contribute in line with their UK activity.
Trump told The Telegraph that any attempt to levy the DST would prompt him to respond with a “big tariff on the UK,” a move he suggested London should expect if the tax isn’t dropped. He framed the measure as targeting American companies and signaled that Washington could react decisively to what he described as an unfair advantage given to UK revenue generators tied to U.S. tech brands.
The conversation touched on the broader strain in the US-UK relationship, which has seen frictions over free speech, trade and foreign bases. Ahead of the King and Queen’s state visit to the United States, Trump said the monarch could help mend the bilateral bond, describing him as a brave and great man. He credited the royal visit with potential to ease tensions, while offering a more cautious assessment of Prime Minister Keir Starmer’s handling of immigration and other policies.
Efforts in Washington have long challenged the DST, with US officials arguing the tax unfairly targets American tech companies. The administration has criticized related standards such as the Online Safety Act 2023 as threats to free expression. In late 2024, Chancellor Reeves resisted calls from Washington to abolish the DST outright and the UK Treasury committed to reviewing the policy only in the context of a forthcoming global tax agreement. The DST remains a temporary measure designed to align with evolving international negotiations that would tax companies based on where they operate.
The Treasury indicated the DST will continue until a global framework is agreed, emphasizing that the levy reflects the economic activity of digital businesses in the UK. This stance underscored a broader, ongoing dispute with the White House over tech taxation and broader trade issues.
In recent months, discussions around potential tariffs have mirrored the broader strategic tension between Washington and London. Trump’s comments reflect how quickly tariff rhetoric can re-emerge in the context of digital taxation and perceived unequal treatment of American tech firms. While the UK argues the DST is a fair contribution from digital platforms, Washington’s position remains that any national approach should be harmonized with an international tax framework designed to prevent unilateral moves that distort competition.