Finance
UK to Face 'big Tariff' if It Doesn't Drop Tech Tax, Trump Tells Telegraph
Published by Global Banking & Finance Review®
Posted on April 23, 2026
1 min readLast updated: April 24, 2026
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U.S. President Donald Trump warned the UK will face a “big tariff” if it does not drop its Digital Services Tax targeting tech giants like Apple, Google and Meta, as reported by The Telegraph. The U.S. has previously signaled retaliatory tariffs for digital taxes, which it views as discriminatory to
UK to face 'big tariff' if it doesn't drop tech tax, Trump says
US-UK Tensions Over Digital Services Tax
WASHINGTON, April 23 (Reuters) - U.S. President Donald Trump said the United States will retaliate with a "big tariff" if Britain continues to target companies like Apple, Alphabet's Google and Meta with its technology tax.
Background on the UK Digital Services 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.
Trump's Warning to the UK
"If they don’t drop the tax, we’ll probably put a big tariff on the UK," the president told reporters during a White House event.
Upcoming Diplomatic Engagements
His comments come ahead of a visit by Britain's head of state, King Charles, next week.
Potential for Improved Relations
Trump said he believes the monarch could help repair the Washington's relationship with the British, which has become strained in recent months.
(Reporting by Jasper Ward in Washington; Editing by Chris Sanders)
Key Takeaways
- •Trump’s threat comes as the UK’s 2% Digital Services Tax (DST), introduced in 2020, continues to apply to major tech firms such as Apple, Google and Meta, raising around £800 million annually (taxwatchuk.org).
- •The U.S. has repeatedly targeted countries with DSTs, warning of substantial additional tariffs and export restrictions, with past statements extending beyond the UK to France, Italy, Spain and other European jurisdictions (theguardian.com).
- •Legal and political obstacles remain. Broad tariffs previously imposed under emergency powers were struck down by U.S. courts, limiting the president’s unilateral authority to levy such measures (tbsnews.net).
References
Frequently Asked Questions about UK to face 'big tariff' if it doesn't drop tech tax, Trump tells Telegraph
1What did President Trump warn regarding the UK's tech tax?
He warned that the US would impose a 'big tariff' if the UK continues its technology tax on companies like Apple, Google, and Meta.
2Which companies are targeted by the UK's technology tax?
Apple, Alphabet's Google, and Meta are among the companies targeted by the UK tech tax.
3How did President Trump communicate his warning?
He gave the warning in an interview with The Telegraph, as reported by Reuters.
4What action is the US considering if the UK does not drop the tech tax?
The US is considering retaliating with a 'big tariff' against the UK.
