US President Donald Trump has threatened to impose heavy tariffs on the United Kingdom (UK) if it does not remove its digital services tax on American technology companies, escalating tensions between the two long-standing allies.
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In an interview with The Telegraph, Trump described the UK’s tax policy as “unfair” and warned that economic measures would follow if Prime Minister Sir Keir Starmer’s government failed to act. He specifically criticized the tax imposed on major US tech firms, arguing that it disproportionately targets American businesses.
.@POTUS on the U.K.’s Digital Services Tax: “We don’t like it when they target American companies… we’ve been looking at it, and we can meet that very easily by just putting a big tariff on the U.K., so they better be careful.” pic.twitter.com/AhwQhz5K4Y
— Rapid Response 47 (@RapidResponse47) April 23, 2026
Trump said that if the UK does not abolish the digital services tax, his administration would respond with significant tariffs on British goods. He did not specify which sectors would be affected but indicated that the measures would be “substantial” and designed to pressure London into compliance.
The US president reiterated his broader stance on trade, stating that American companies should not be subjected to discriminatory taxation abroad. He claimed that his administration has consistently used tariffs as a tool to correct trade imbalances and protect US economic interests.
The remarks come amid already sensitive transatlantic economic discussions, with both countries seeking to maintain strong trade relations while addressing regulatory differences in digital markets. Analysts say the threat could complicate ongoing negotiations between Washington and London on technology taxation and trade frameworks.
Trump also touched on broader geopolitical issues during the interview, including Russia’s participation in international forums. He suggested that Russian President Vladimir Putin’s presence at a G20 summit could be “helpful,” though he said he was uncertain whether such attendance would take place.
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The UK government has not yet issued an official response to Trump’s latest comments. However, trade experts warn that renewed tariff threats could strain diplomatic ties and impact global market stability if implemented.