Trump threatens tariffs on UK over digital tax dispute

US President Donald Trump has warned that the United States could impose heavy tariffs on the United Kingdom if it does not remove its digital services tax on American technology companies.

In an interview with The Telegraph, Trump said the tax imposed by the UK on US tech firms is “unfair” and must be withdrawn. He specifically warned that if British Prime Minister Keir Starmer does not scrap the policy, Washington could respond with significant tariff measures.

Trump argued that American technology companies are being disproportionately targeted by foreign tax regimes, and he signalled that his administration is prepared to take strong economic action in response. He said tariffs remain a key tool for protecting US economic interests and ensuring fair treatment of American businesses abroad.

The US president also reiterated his broader trade stance, suggesting that tariffs have previously helped resolve international disputes and that many countries continue to seek trade agreements with the United States despite existing duties.

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During the interview, Trump was also asked about Russia’s participation in upcoming G20 meetings. He responded that he was unsure whether Russian President Vladimir Putin would attend but suggested that his presence could be beneficial for discussions.

The remarks come amid growing global trade tensions, with several countries revisiting digital taxation frameworks targeting major US tech firms. Washington has repeatedly opposed such taxes, arguing they unfairly discriminate against American companies operating abroad.

Economic analysts say Trump’s warning could escalate transatlantic trade tensions if both sides fail to reach a compromise. However, diplomatic channels between the US and UK remain open, and officials are expected to continue discussions on digital taxation policies in the coming months.

The situation highlights ongoing friction between major economies over technology regulation, taxation, and trade competitiveness in the digital age.