UK ‘open to discussing’ digital services tax with Trump administration
Jamieson Greer said Donald Trump's threat to slap 100% tariffs on European countries with digital services taxes is “not a bluff.”
LONDON — The UK government has indicated willingness to engage in discussions with the US administration regarding its digital services tax (DST), following heightened pressure from the White House. In June, President Donald Trump threatened to impose a 100 percent tariff on European nations that implement DSTs targeting US tech companies.
President Trump's top trade official, Jamie Schwartz Greer, confirmed the threat was "not a bluff," emphasizing the seriousness of the administration's demand for foreign governments to eliminate such taxes. A UK government spokesperson stated that they remain open to discussing US concerns and working internationally to address them.
The DST, which generated over £1 billion last year primarily from American tech firms, has been a persistent point of contention between the US and the UK. Despite Trump's criticism, the UK government has thus far resisted abandoning the tax, including during trade negotiations last year. The UK-U.S. Economic Prosperity Deal, signed by former Prime Minister Keir Starmer and President Trump, did not mention the DST but highlighted continued discussions to enhance digital trade and tackle non-tariff barriers.
Greer highlighted that the US administration would not impose artificial deadlines and that trade relations with the UK are currently positive, citing positive interactions with Trade Secretary Jonathan Reynolds and Prime Minister's business adviser Varun Chandra.
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