US Ambassador Warns UK of Tariffs Over Tech Tax, Criticizes Social Media Ban
Quick Look
US Ambassador Warren Stephens warned the UK could face tariffs if Prime Minister Andy Burnham raises taxes on American tech giants, also criticizing the government's social media ban for under 16s.
AI-generated summary
Why It Matters
US Ambassador Warren Stephens warned the UK about potential tariffs if new PM Andy Burnham increases taxes on American tech giants and criticized the social media ban for under 16s.
LONDON — Donald Trump’s ambassador to the U.K., Warren Stephens, has warned Britain could face further tariffs, if new Prime Minister Andy Burnham raises taxes on American tech giants.
“If we go down further taxation on primarily American companies, that could certainly [elicit a tariff response],” Stephens told Sky News on Thursday morning.
The warning comes as Burnham announces his plans to slash business rates bills for pubs, clubs and live music venues by shifting the tax burden elsewhere.
It is widely reported that the changes will be funded by a 20 percent increase in business rates for large fulfillment warehouses used by companies like Amazon and ASOS.
Stephens also criticized the government’s social media ban for under 16s — calling it “a little draconian from a freedom of speech point of view.”
“I don’t think we see it as an attack on U.S. companies, but U.S. companies are the ones that are most affected by it,” he said. “But I think we’ll find a way, as best as we can, to work with the laws and rules of all the countries.”
The U.S. president has recently threatened a 100 percent tariff on European countries that impose digital services taxes on Big Tech companies.
What to Watch
AI outlook — possibilities, not facts
The UK government will likely proceed with plans to increase business rates for large fulfillment warehouses.
Likely · Within months
Open Questions
- How will the UK government respond to the tariff threat?
- Will the social media ban be reconsidered?
