U.S. President Donald Trump attends a health care affordability event in the Oval Office of the White House on Thursday, April 23, 2026 in Washington, DC, USA.
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US President Donald Trump has issued a stern warning to Britain, threatening to impose steep tariffs on the country unless it lowers the digital services tax on US tech companies.
The tax was first introduced in 2020 and will be a 2% levy on the revenue of search engines, social media services and online marketplaces that derive value from UK users. This includes several US companies such as: alphabetGoogle, Meta and apple.
Speaking from the Oval Office on Thursday, President Trump criticized those who are trying to “make easy money” by targeting American companies.
“We’ve been looking at that, but the UK would do well to be careful because it could easily be achieved by just imposing huge tariffs on the UK,” Trump said.
He did not give specific figures, but added: “If we don’t cut taxes, we will probably end up imposing significant tariffs on the UK.”
CNBC has contacted the UK Department of Commerce and is awaiting a response.
Britain’s ruling Labor government has previously defended the tax, considering it an important fiscal measure given that it raised about 800 million pounds ($1.08 billion) in revenue in the 2024-2025 financial year.
This measure remained unchanged when the US and UK agreed to a trade deal in May last year, but Trump told Sky News earlier this month that the terms of the deal “can be changed at any time.”
President Trump’s comments come ahead of a four-day state visit to the United States by King Charles III and Queen Camilla, and follow a series of public criticisms of British Prime Minister Keir Starmer in recent weeks, which have reignited transatlantic trade tensions.
The king and queen are scheduled to visit the United States on Monday and are expected to meet with President Trump at the White House.
