Trump Warns UK With Heavy Tariffs Over 2% Tech Tax Row

- US President Donald Trump threatens tariffs over UK’s 2% digital services tax on American tech firms - UK refusal to reverse policy deepens trade uncertainty amid weak growth and high inflation On April 24, 2026, The Guardian reported that US President Donald Trump warned he would impose a “big tariff” on the United Kingdom unless it abandons its 2% digital services tax on major US technology firms such as Amazon, Google, and Apple. According to The Guardian on April 24, 2026, the UK government under Prime Minister Keir Starmer reaffirmed that the tax will remain, with officials describing it as a “fair and proportionate approach” to taxing global businesses operating in the country. As a result, the standoff has put new strain on already tense UK-US trade relations. The Guardian reported on April 24, 2026, that the two countries reached a trade agreement in May 2025 with the digital services tax left in place. However, the outlet noted that the dispute has since escalated, as President Trump stated that any retaliatory tariff would “match or exceed whatever the UK collects,” directly tying prospective US action to the enforcement of the tax. The Guardian further explained that the digital services tax, introduced in 2020, remains active while international negotiations on a global tax under the stalled OECD framework continue. According to The Guardian on April 24, 2026, analysts say the dispute further challenges the British economy, which faces slow growth, 4% inflation, and ongoing fallout from the Iran conflict. The outlet reported that the International Monetary Fund recently downgraded the UK’s 2026 growth outlook by half a percentage point, marking the largest reduction among G7 nations. In addition, The Guardian stated that UK lawmakers have expressed doubt about the benefits of recent US-UK economic deals, while business leaders warn that ongoing trade unpredictability could hinder recovery. The Guardian reported on April 24, 2026, that the digital services tax row is now seen as a key factor complicating UK efforts to stabilize its economy and boost trade confidence.