Trump Threatens UK Tariffs Over Digital Services Tax

President Donald Trump threatened to impose a big tariff on the United Kingdom if the British government does not abolish its digital services tax on American tech firms. Speaking from the Oval Office on April 23, 2026, Trump characterized the 2% levy on large companies like Amazon, Google, Meta, and eBay as a discriminatory effort to harm American technology. He stated that the U.S. would reciprocate with measures equal to or greater than the £800 million in annual revenue the tax generates for the UK.

The trade tension coincides with a diplomatic rift over the conflict in Iran. Prime Minister Keir Starmer has refused to involve British forces in the war, stating during Prime Minister's Questions that joining the conflict is not in the national interest and that he will not yield to U.S. pressure. In related remarks, Trump dismissed the influence of Prince Harry and ruled out the use of nuclear weapons against Iran.

Inside the UK, the government faces conflicting pressures. Tax Justice UK urged the administration to resist the U.S. demands to protect public services and corporate tax revenue. Meanwhile, Reform party leader Nigel Farage expressed concern regarding Trump's judgment concerning the war in Iran.