Overview
- Trump, who spoke from the Oval Office on Thursday, warned he would put a "big tariff" on UK goods that equals or exceeds the levy unless the tax is dropped.
- The Prime Minister’s office said Friday the policy stays in place and called it a key way to ensure large digital firms pay in the UK.
- The digital services tax is a 2 percent charge on revenue from UK users for companies with more than £500 million in global digital sales and at least £25 million in the UK.
- Treasury figures show the tax raised about £800 million in 2024–25 and about £944 million in 2025–26.
- The levy survived the 2025 UK–US trade deal, and new tariffs could widen a rift in ties as other European countries run similar taxes and a global replacement has stalled.