Trump says U.S. could impose tariffs on the UK over its digital services tax
The Facts
- Trump said the U.S. would likely impose tariffs on the UK if Britain does not drop its digital services tax.
- Trump made the remarks to reporters from the Oval Office during a White House event.
- The UK introduced its digital services tax in 2020.
- The tax is a 2% levy on revenues from certain digital activities and applies to large digital companies, including major U.S. tech firms.
- Coverage of the dispute identifies companies such as Apple, Alphabet's Google and Meta among those affected by the UK tax.
- Trump said he opposes the tax because he views it as targeting American companies.
- The dispute adds to trade friction between the U.S. and UK over the treatment of large technology companies.
- After Trump's warning, the UK government said its position on the digital services tax had not changed.
Context
What is the UK's digital services tax?
It is a tax introduced in 2020 that applies a 2% levy to revenues from certain digital activities, including areas such as social media, search engines and online marketplaces that derive value from UK users Guardian,CNBC,Euronews English.
Which companies are described as being affected?
Reports say the tax affects large U.S. technology companies, including Apple, Alphabet's Google and Meta Telegraph,U.S. News & World R…,CNBC.
What remains unresolved after Trump's warning?
Trump said the U.S. could respond with tariffs if the tax stays in place, but the UK government said its position on the tax was unchanged, leaving the next step in the dispute unclear Independent,Independent.
View all 90 sources
Wire services (6)
Independent coverage (50)
About these frames
See this differently than someone you know would? Two ways to keep it going.
The dial works on any URL — paste an article you read elsewhere this week.