DONALD Trump has threatened to slap a 100% import tariff on the UK over its digital services tax on American social media firms.
The US president also said it would supersede Britain’s existing trade deal.
His latest intervention is likely to further fuel transatlantic tensions, with relations already strained by the Iran conflict.
It also poses a test for Keir Starmer’s likely successor in Downing Street, Andy Burnham, who the Republican president has described as “extremely liberal”.
Trump had previously warned over a retaliatory tax unless Britain dropped the 2% levy on the revenues of several major US tech companies.
The tax targets companies whose worldwide revenues from digital activities exceed £500 million, with more than £25m of the revenue from UK users.
According to a 2025 Treasury review, the levy raised more than £800m in 2024–25, up from £678m in 2023–24.
Writing on his Truth Social social media platform, Trump said: “Numerous European Countries have been discussing the imminent implementation of a Digital Services Tax on American Companies.
“Some of these Countries are close to actually doing this.
“Please let this statement serve to represent that any Country that imposes such a Tax will immediately be met with a 100% TARIFF on any and all Goods sent to the United States of America.
“This TARIFF will supersede Trade Deals made with the Country, whether implemented, signed, or not. Additionally, the 100% TARIFF will be immediately imposed, if they proceed.”
The Department for Business and Trade has been contacted for comment.
Only a few months ago, Trump had warned the UK faced “a big tariff” and had “better be careful”.
Trump argued the levy, which have long been a source of tension in UK-US relations, targeted “top companies in the world”.
Speaking in April, he said: “They think they’re going to make an easy buck, that’s why they’ve all taken advantage of our country.”
The digital services tax went unchanged under the UK–US trade deal agreed in May 2025, despite being a point of discussion.
In a post on Truth Social from August 2025, Trump said he would “stand up to countries that attack our incredible American Tech Companies”.
“Digital Taxes, Digital Services Legislation, and Digital Markets Regulations are all designed to harm, or discriminate against, American Technology,” he wrote.
“This must end,” he said and vowed that “unless these discriminatory actions are removed” he would “impose substantial additional tariffs” on the offending nation’s exports to the US.
