President Donald Trump threatened the United Kingdom with a big tariff unless it eliminates its digital services tax. He claims the levy unfairly targets American technology firms including Apple, Google, and Meta.
The UK introduced the digital services tax in 2020. The policy imposes a 2% levy on UK-derived revenues. The tax applies to companies with global digital revenues exceeding £500 million. Eligible firms must also generate over £25 million in UK revenues.
This dispute remained unresolved in the trade deal signed in May 2025. It continues to serve as a primary source of tension in U.S.-UK trade relations.