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 repeals its digital services tax on American technology companies. The tax, implemented in 2020, has been a persistent point of contention in bilateral trade relations.

Main Body

The digital services tax imposes a 2% levy on the revenues of major US tech firms, including Alphabet''s Google, Meta, and Apple, whose global digital revenues exceed £500 million and derive more than £25 million from UK users. According to a 2025 Treasury review, the tax generated approximately £800 million in revenue for the 2024-25 fiscal year, an increase from £678 million the previous year. Speaking from the Oval Office, Trump stated that the US could ''very easily'' respond by imposing a tariff on the UK, and that such a tariff would be ''equal or greater'' than the revenue the UK collects from the levy. He characterized the tax as targeting ''top companies in the world'' and accused the UK of seeking to make an ''easy buck.'' The UK government, through a Downing Street spokesperson, has maintained that the tax is ''fair and proportionate'' and that its position remains unchanged. The tax was not altered during the UK-US trade deal concluded in May 2025, despite being a subject of discussion. These remarks occur within a broader context of strained bilateral relations. UK Prime Minister Keir Starmer has ruled out British involvement in the Iran war, stating that ''it is not our war'' and that he will not yield to pressure. Trump has also suggested that the terms of the 2025 trade agreement ''can always be changed.'' Additionally, reports have emerged that the US may review Britain''s claim to the Falkland Islands, though Downing Street has asserted that sovereignty rests with the UK. The dispute is not isolated to the UK; similar US threats have been directed at other European nations with digital services taxes, such as France, Italy, and Spain. In a Truth Social post from August 2025, Trump vowed to impose ''substantial additional tariffs'' on countries that maintain such measures, which he described as discriminatory. The Liberal Democrat leader, Sir Ed Davey, criticized the government''s stance, questioning why Starmer would ''reward this bullying behaviour with a state visit from the King.'' King Charles III and Queen Camilla are scheduled for a state visit to the US beginning the following Monday.

Conclusion

The UK government has thus far declined to alter its digital services tax, while the US president has reiterated his intention to impose retaliatory tariffs. The situation remains unresolved, with potential implications for transatlantic trade relations and the upcoming state visit.

Vocabulary Learning

contention
Heated disagreement; a point of dispute.爭論；爭議點
Example:The tax, implemented in 2020, has been a persistent point of contention in bilateral trade relations.
easy buck
Money earned with little effort, often in a questionable way.輕易得來的錢；不義之財
Example:He characterized the tax as targeting 'top companies in the world' and accused the UK of seeking to make an 'easy buck.'
levy
A tax or fee that is imposed.徵稅；徵收額
Example:The digital services tax imposes a 2% levy on the revenues of major US tech firms.
retaliatory
Intended to repay an injury or wrong; relating to retaliation.報復性的
Example:US President Donald Trump has warned that the United States will impose retaliatory tariffs on the United Kingdom.
sovereignty
Supreme power or authority, especially over a territory.主權
Example:Downing Street has asserted that sovereignty rests with the UK.

Sentence Learning

The digital services tax imposes a 2% levy on the revenues of major US tech firms, including Alphabet's Google, Meta, and Apple, whose global digital revenues exceed £500 million and derive more than £25 million from UK users.
This sentence features a main clause with a complex noun phrase object, followed by a non-restrictive relative clause introduced by 'whose' that modifies the three companies. The relative clause contains a compound verb phrase. The structure demonstrates high lexical density and embedded modification.此句包含一個主要子句，其賓語為複雜名詞短語，隨後以'whose'引導的非限制性關係從句修飾該三家公司。關係從句包含複合動詞短語。結構展現高詞彙密度與嵌入式修飾。
Speaking from the Oval Office, Trump stated that the US could 'very easily' respond by imposing a tariff on the UK, and that such a tariff would be 'equal or greater' than the revenue the UK collects from the levy.
The sentence begins with a participial phrase modifying the subject. The main clause contains two parallel 'that' clauses as objects of 'stated'. The second 'that' clause includes a comparative structure and a reduced relative clause.句子以分詞短語開頭，修飾主語。主要子句包含兩個並列的'that'從句作為'stated'的賓語。第二個'that'從句包含比較結構及簡化關係從句。
The tax was not altered during the UK-US trade deal concluded in May 2025, despite being a subject of discussion.
This sentence uses a reduced relative clause to modify 'trade deal'. The main clause is in passive voice. A prepositional phrase with a gerund provides concessive information, showcasing compactness and ellipsis.此句使用簡化關係從句修飾'貿易協議'。主要子句為被動語態。帶有動名詞的介詞短語提供讓步信息，展現緊湊性與省略。
In a Truth Social post from August 2025, Trump vowed to impose 'substantial additional tariffs' on countries that maintain such measures, which he described as discriminatory.
The sentence opens with a fronted prepositional phrase. The main verb is followed by an infinitive phrase. There are two relative clauses: a restrictive one and a non-restrictive one. The use of 'which' refers to the entire preceding noun phrase.句子以前置介詞短語開頭。主要動詞後接不定式短語。有兩個關係從句：限制性從句和非限制性從句。'which'指代整個前述名詞短語。
The Liberal Democrat leader, Sir Ed Davey, criticized the government's stance, questioning why Starmer would 'reward this bullying behaviour with a state visit from the King.'
This sentence features an appositive set off by commas. The main clause is followed by a participial phrase containing an embedded indirect question. The phrasing is rhetorically charged.此句包含以逗號分隔的同位語。主要子句後接包含嵌入式間接疑問句的分詞短語。措辭具有修辭色彩。