President Donald Trump has threatened to impose a 100 per cent tariff on the UK if the Labour Government implements tax on US companies.
Taking to Truth Social, the leader of the Free World confirmed the sizable levy will be imposed on any country that introduces a digital services tax.
Multiple countries, including the UK, are considering introducing such a charge on tech and social media firms that operate in their respective nations.
On Truth Social, President Trump posted: “Numerous European Countries have been discussing the imminent implementation of a Digital Services Tax on American Companies.
Donald Trump to hit UK with 100% tariffs ‘IMMEDIATELY’ if Labour imposes tax
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GETTY“Some of these countries are close to actually doing this. Please let this statement serve to represent that any country that imposes such a tax will immediately be met with a 100 per cent tariff on any and all goods sent to the United States of America.
“This tariff will supersede trade deals made with the country, whether implemented, signed, or not. Additionally, the 100 per cent TARIFF will be immediately imposed if they proceed.”
Introduced in 2020, the UK’s digital services tax is charged at two per cent on the revenues of some of the largest US companies.
Among these firms are Apple, Facebook and Instagram owner Meta, and Alphabet’s Google.
Countries are exploring taxes on US-based tech companies
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GETTY
The Chancellor has faced criticism for over-taxing the private sector and making life harder for businesses | RACHEL REEVES / LINKEDIN
In April, President Trump issued a similar threat over digital service taxes and suggested sizable tariffs will be levied on any country that has one.
The UK tax targets companies whose worldwide revenues from digital activities exceed £500million, with more than £25million of the revenue from UK users.
According to a 2025 Treasury review, the levy raised more than £800million in 2024–25, up from £678million in 2023–24.
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