Trump threatens UK tariff

President Donald Trump said he would put “a big tariff” on the United Kingdom unless London drops its digital services tax on U.S. tech companies. (cnbc.com) Trump made the threat in the Oval Office on Thursday, April 23, saying Britain should “be careful” and that any tariff could match or exceed the value of the tax. (cnbc.com) (news.sky.com) The U.K. tax, introduced in 2020, charges 2% on revenue from search engines, social media platforms and online marketplaces that derive value from U.K. users. It applies to groups with more than £500 million in global digital revenue and more than £25 million from U.K. users. (news.sky.com) (cnbc.com) CNBC reported the levy raised about £800 million in the 2024-25 financial year. U.S. companies including Google, Meta and Apple are among the firms affected. (cnbc.com) The dispute had not been removed by the U.S.-U.K. trade deal agreed in May 2025. Trump told Sky News earlier this month that the terms of that agreement “can always be changed.” (cnbc.com) (news.sky.com) The threat lands as Washington’s broader tariff agenda is shifting again. CNBC reported that India’s trade deal with the U.S. is still unsigned and that Section 301 investigations are due to wrap up in June, which could expose New Delhi to higher duties. (cnbc.com) India had expected the first tranche of its deal by mid-March, but talks are still going, according to CNBC. Former U.S. trade official Mark Linscott told CNBC it was “critical” to seal that agreement by the end of May. (cnbc.com) Trump’s comments also came days before King Charles III and Queen Camilla were scheduled to begin a four-day U.S. state visit on Monday. CNBC said they are expected to meet Trump at the White House. (cnbc.com) For now, the immediate question is whether Britain keeps a tax worth £800 million a year and risks retaliation, or changes course to avoid a new tariff fight with Washington. (cnbc.com)