UK government open to talks on digital services tax amid US tariff threats
White House trade official Jamieson Greer warns that tariff threats against countries with digital services taxes are not a bluff.
Quick Look
The UK government expresses willingness to discuss digital services tax (DST) concerns with the US after trade official Jamieson Greer reiterated that President Trump's threat of 100% tariffs on countries with such taxes is serious.
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Why It Matters
The UK's digital services tax targets revenue from tech firms. The US has threatened 100 percent tariffs on European countries implementing such taxes.
LONDON — Prime Minister Andy Burnham’s government said the U.K. is willing to discuss American concerns over its digital services tax amid renewed pressure from the White House.
President Donald Trump in June threatened to impose 100 percent tariffs on European countries with DSTs which target U.S. tech firms, and in an interview with The Times newspaper published on Monday, Trump’s top trade official Jamieson Greer said the threat was “not a bluff” and the president’s demands that foreign governments abandon such taxes were “quite serious.”
“We remain open to discussing U.S. concerns and working with partners internationally,” a U.K. government spokesperson said when asked about Greer's comments.
“This tax is about making sure that businesses pay their fair share of U.K. tax based on the value they derive from U.K. activities,” the spokesperson said, adding that the U.K. is committed to removing it “once a global solution is in place.”
The DST raised over £1 billion last year, predominantly from American tech firms, and has repeatedly drawn Trump's ire.
The U.K. government has so far resisted calls to abandon the tax, including during trade negotiations last year. A U.K.-U.S. Economic Prosperity Deal signed by Trump and Burnham’s predecessor, Keir Starmer, did not mention the DST but said both sides would continue discussions to increase digital trade and address non-tariff barriers.
Greer added in his interview with The Times that the U.S. administration would not “set artificial timelines” and that relations with his British counterparts, including Trade Secretary Jonathan Reynolds and the prime minister’s business adviser Varun Chandra, are positive.
Open Questions
- Will the UK repeal the DST before a global solution is reached?
- What specific concessions is the US seeking?
