UK maintains digital services tax despite Trump tariff threats

10 articles · Updated · The Independent · Apr 24

Sir Keir Starmer confirms the UK will not drop its 2% digital tax on US tech firms, which raised over £800m in 2024–25.
President Trump warns of retaliatory tariffs exceeding the tax’s value, escalating tensions as the UK insists the levy is fair and proportionate.
The dispute adds to recent strains in UK-US relations, including disagreements over Iran and the Falkland Islands, and follows similar US threats against other European digital taxes.

With tariffs looming, will Britain's digital tax cost its economy more than it collects?

Is the entire 2025 U.S.-U.K. trade deal at risk over this one digital tax disagreement?

If the U.S. penalizes the U.K. with tariffs, which European nation with a similar tax is next?

Is the tariff threat a policy dispute or a high-stakes tactic ahead of the King's state visit?

As the U.S. fights foreign digital taxes, are its own tech giants paying their fair share at home?

Beyond tariffs and taxes, is a global consensus for taxing big tech still possible?