Observed Signal · Apr 24, 2026 · Policy Update · Source: CNBC Technology · Impact: 4/5 · Sentiment: Negative
Trump threatens tariffs over UK digital services tax
U.S. President Donald Trump warned on April 23–24, 2026 that the United States could impose steep tariffs on the United Kingdom if it does not repeal the U.K. digital services tax (DST) targeting revenues from search engines, social media services and online marketplaces. The DST, introduced in 2020, levies 2% on qualifying revenues and raised around £800 million ($1.08 billion) in the 2024–25 fiscal year. Trump made the remarks from the Oval Office, criticizing the measure as targeting American companies and saying a "big tariff" could be imposed without specifying an amount. Britain’s Labour government has defended the tax. CNBC contacted the U.K. Department for Business and Trade for comment. The comments revive trans‑Atlantic trade tensions ahead of a scheduled state visit by King Charles III and Queen Camilla to the U.S.
A potential U.S. tariff threat targeting the U.K.'s digital services tax could materially affect major ad-supported platforms (search and social), raise regulatory and trade risks for transatlantic digital businesses, and revive trade tensions impacting ad markets and platform operations.
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Key Takeaways & Evidence Grounding
- President Donald Trump warned the U.S. could impose tariffs on the U.K. if it does not drop its digital services tax.
- The U.K. digital services tax is a 2% levy on revenues of search engines, social media services and online marketplaces deriving value from U.K. users.
- The DST was first introduced in 2020 and raised around £800 million ($1.08 billion) in the 2024–2025 financial year.
- U.S. tech companies cited as affected include Alphabet’s Google, Meta and Apple.
- Trump delivered the remarks from the Oval Office and did not specify a tariff amount; CNBC sought comment from the U.K. Department for Business and Trade.
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