Washington, April 24, 2026 – The Europe Today: U.S. President Donald Trump has warned of potential tariffs on the United Kingdom if London does not withdraw its digital services tax (DST), escalating tensions over taxation of major technology firms, according to media reports.
In an interview with The Telegraph, Trump criticized the UK’s digital services tax, arguing that it disproportionately targets leading American technology companies, including Apple, Google, and Meta.
The UK’s DST imposes a 2 percent levy on revenues generated within the country by large digital platforms such as search engines, social media networks, and online marketplaces.
“I don’t like it when they target American companies,” Trump said, adding that the United States could respond by imposing significant tariffs on British goods if the tax is not repealed. “If they don’t drop the tax, we’ll probably put a big tariff on the UK,” he warned.
Official figures released by HM Revenue and Customs showed that the digital services tax generated £944 million (approximately $1.3 billion) in the 2025–2026 fiscal year, marking a 17 percent increase compared to the previous year. Projections indicate that revenues from the tax could reach £1.4 billion annually by 2030.
The United Kingdom has maintained that the measure will remain in place until a global agreement on digital taxation is achieved, emphasizing that it ensures multinational digital companies contribute fairly in countries where they generate revenue.
The dispute reflects broader transatlantic disagreements over digital taxation policies. Washington has consistently argued that such levies unfairly single out U.S.-based firms, while European governments contend that they are necessary to address gaps in the taxation of the digital economy.
