US President Threatens Tariffs on UK Over Digital Services Tax

Apr 24, 2026, 12:32

Introduction

US President Donald Trump has warned that the United States will impose retaliatory tariffs on the United Kingdom unless the UK removes its digital services tax on American technology companies. The tax, which started in 2020, has been an ongoing source of disagreement in trade relations between the two countries.

Main Body

The digital services tax is a 2% charge on the revenues of major US tech firms such as Alphabet''s Google, Meta, and Apple. These companies have global digital revenues over £500 million and earn more than £25 million from UK users. According to a 2025 Treasury review, the tax raised about £800 million for the UK in the 2024-25 financial year, up from £678 million the year before. Speaking from the Oval Office, Trump stated that the US could ''very easily'' respond by placing a tariff on the UK, and that such a tariff would be ''equal or greater'' than the revenue the UK collects from the tax. He described the tax as targeting ''top companies in the world'' and accused the UK of trying to make an ''easy profit.'' In response, a Downing Street spokesperson maintained that the tax is ''fair and proportionate'' and that the UK''s position has not changed. The tax was not changed during the UK-US trade deal signed in May 2025, even though it was discussed. These comments come at a time of wider tension between the two countries. UK Prime Minister Keir Starmer has ruled out British involvement in the Iran war, saying ''it is not our war'' and that he will not give in to pressure. Trump has also suggested that the terms of the 2025 trade agreement ''can always be changed.'' Furthermore, there have been reports that the US may review Britain''s claim to the Falkland Islands, although Downing Street has stated that sovereignty belongs to the UK. The dispute is not limited to the UK; the US has made similar threats to other European countries with digital services taxes, including France, Italy, and Spain. In a Truth Social post from August 2025, Trump promised to impose ''substantial additional tariffs'' on countries that keep such measures, which he called unfair. Liberal Democrat leader Sir Ed Davey criticized the government''s approach, questioning why Starmer would ''reward this bullying with a state visit from the King.'' King Charles III and Queen Camilla are scheduled to begin a state visit to the US the following Monday.

Conclusion

The UK government has so far refused to change its digital services tax, while the US president has repeated his plan to impose retaliatory tariffs. The situation remains unresolved, with possible consequences for transatlantic trade relations and the upcoming state visit.

Vocabulary Learning

give in to pressure
To yield or surrender to demands or force from others.屈服於壓力
Example:Starmer stated he will not give in to pressure regarding the Iran war.
ongoing source of disagreement
A continuous cause of conflict or argument.持續的分歧來源
Example:The digital services tax has been an ongoing source of disagreement in trade relations between the US and UK.
retaliatory tariffs
Tariffs imposed as a response to another country's trade measures.報復性關稅
Example:President Trump warned that the US will impose retaliatory tariffs on the UK unless the digital services tax is removed.
ruled out
Decided that something is not possible or not allowed.排除；拒絕考慮
Example:UK Prime Minister Starmer has ruled out British involvement in the Iran war.
sovereignty
Supreme authority within a territory; the right to govern oneself.主權
Example:Downing Street stated that sovereignty over the Falkland Islands belongs to the UK.

Sentence Learning

The tax, which started in 2020, has been an ongoing source of disagreement in trade relations between the two countries.
Relative clause 'which started in 2020' provides additional information about the tax without starting a new sentence. This helps to keep the description concise and integrated.關係從句「which started in 2020」提供關於該稅項的額外資訊，無需另起新句，使描述簡潔而連貫。
The tax was not changed during the UK-US trade deal signed in May 2025, even though it was discussed.
Passive voice 'was not changed' and 'was discussed' shift focus to the tax and the trade deal rather than the people involved. The linking phrase 'even though' introduces a contrast, showing that despite discussion, no change occurred.被動語態「was not changed」和「was discussed」將焦點轉移到稅項和貿易協議上，而非相關人士。連接詞「even though」引出對比，顯示儘管有討論，但沒有作出改變。
In a Truth Social post from August 2025, Trump promised to impose 'substantial additional tariffs' on countries that keep such measures, which he called unfair.
Two relative clauses: 'that keep such measures' defines which countries, and 'which he called unfair' adds Trump's opinion. This structure efficiently combines definition and evaluation.兩個關係從句：「that keep such measures」界定哪些國家，而「which he called unfair」加入特朗普的評價。這種結構有效地結合了定義和評價。
The UK government has so far refused to change its digital services tax, while the US president has repeated his plan to impose retaliatory tariffs.
The linking word 'while' contrasts the UK's refusal to change the tax with the US president's plan to impose tariffs. It shows simultaneous but opposing actions.連接詞「while」對比英國拒絕改變稅項與美國總統計劃徵收關稅，顯示同時發生的相反行動。
The dispute is not limited to the UK; the US has made similar threats to other European countries with digital services taxes, including France, Italy, and Spain.
Passive voice 'is not limited' emphasizes the scope of the dispute. The semicolon joins two related independent clauses, showing that the threat extends beyond the UK.被動語態「is not limited」強調爭議的範圍。分號連接兩個相關的獨立子句，顯示威脅不僅限於英國。