Finance
Trump Threatens Starmer With ‘big Tariff’ Over Tech Tax, Telegraph Reports
Published by Global Banking & Finance Review®
Posted on April 24, 2026
2 min readLast updated: April 24, 2026
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U.S. President Donald Trump warned he would impose a “big tariff” on the UK if Prime Minister Keir Starmer doesn’t revoke the 2% digital services tax aimed at U.S. tech firms, calling it unfair and promising retaliation equal to or exceeding the levy’s impact. The tax, unchanged under the 2025 UK‑U.
Trump threatens Starmer with ‘big tariff’ over tech tax, Telegraph reports
Trump's Warning Over UK's Digital Service Tax
Tariff Threat Linked to Digital Service Tax
April 24 (Reuters) - U.S. President Donald Trump said he would impose tariffs on Britain if Prime Minister Keir Starmer does not drop the digital service tax, The Telegraph reported on Friday, citing an interview with the president.
Trump's Statement to The Telegraph
Trump told The Telegraph he would “put a big tariff on the UK” if it did not drop its tax, which is viewed as unfairly targeting U.S. tech companies.
Background on the UK Digital Services Tax
Introduction of the Tax
The United Kingdom rolled out its 2% digital services tax in 2020, a move that has been criticized by Trump and his predecessor Democrat Joe Biden. The digital service tax targets companies like Apple, Alphabet's Google , and Meta .
Trump's Criticism of the Tax
Impact on American Companies
“I don’t like it when they target American companies, because basically, you’re talking about our great American companies...and the top companies in the world,” Trump said.
Potential Tariff Response
“We’ve been looking at it, and we can meet that very easily by just putting a big tariff on the UK. So they better be careful. If they don’t drop the tax, we’ll probably put a big tariff on the UK,” he added.
Context and Upcoming Events
King Charles's Visit to the U.S.
Trump's comments come ahead of a visit by Britain's King Charles to the U.S., next week.
Reporting Credits
(Reporting by Akanksha Khushi in Bengaluru; Editing by Tom Hogue and Raju Gopalakrishnan)
Key Takeaways
- •Trump’s threat reflects escalating U.S.–UK tensions over digital policy, framing the UK’s 2% digital services tax as discriminatory against American tech giants (theguardian.com).
- •The digital services tax applies to firms with global revenue over £500 million and £25 million from UK users, generating substantial revenue and remaining intact despite trade negotiations (theguardian.com).
- •Retaliatory tariffs, if enacted, could affect multiple sectors beyond tech, risking ripple effects through integrated supply chains and broader trade relations (newshub.co.uk).
References
Frequently Asked Questions about Trump threatens Starmer with ‘big tariff’ over tech tax, Telegraph reports
1What did President Trump threaten regarding the UK digital service tax?
President Trump threatened to impose tariffs on the UK if the digital service tax is not dropped.
2Who was the target of Trump's tariff threat?
UK Prime Minister Keir Starmer and the British government were the targets due to their digital service tax.
3Which companies are affected by the UK digital service tax?
The tax is viewed as mostly targeting major U.S. tech companies.
4Where was Trump's threat reported?
The threat was reported by The Telegraph, citing an interview with President Trump.
