US President Donald Trump has issued a warning to impose tariffs on the UK if it does not eliminate its digital services tax targeting American social media giants. The tax, implemented in 2020, imposes a 2% levy on the revenues of major US tech companies operating in the UK.

During a press briefing at the Oval Office, President Trump indicated that the UK could face significant tariffs if the tax is not removed. The tax applies to companies with global digital revenues exceeding £500 million, with a portion of that revenue generated from UK users.

President Trump criticized the tax as unfairly targeting top global companies and expressed his readiness to retaliate with tariffs greater than the tax amount. Despite discussions during the UK-US trade deal negotiations in May 2025, the digital services tax remained unchanged, leading to heightened tensions in the bilateral relationship.

The President’s recent comments add to the strain in UK-US relations, exacerbated by differences over international conflicts. The UK opposition leader, Sir Keir Starmer, reaffirmed the country’s stance of non-involvement in certain conflicts, resisting pressure from the US.

President Trump’s stance echoes previous threats to impose tariffs on countries with digital taxes impacting American tech companies. He vowed to confront nations hindering American technology and threatened additional tariffs on offending countries. Downing Street has been contacted for further comments on the matter.