DONALD Trump yesterday threatened to slap tariffs on countries that refuse to scrap taxes targeting US tech giants.
The US President lashed out at levies, including the UK’s 2 per cent Digital Services Tax (DST), accusing them of unfairly favouring Chinese firms.
On his Truth Social platform, he expressed anger, stating: “Digital taxes, legislation, rules, or regulations are made to damage or target American technology.”
Promising to defend US companies, Mr. Trump proclaimed: “As the President of the United States, I will oppose nations that target our outstanding American tech corporations.
“I will enforce significant extra tariffs on that nation’s exports to the USA and establish export limitations on our well-guarded technology and chips.”
In an effort to ease tensions, Downing Street responded, with a representative for Sir Keir Starmer asserting: “The US is our closest ally, and we will always engage in discussions about any issues.”
“We’ve got a very constructive relationship with the US across many issues.”
The UK’s Digital Services Tax, implemented in 2020, has been a contentious issue for years, with Washington consistently criticizing it as harsh on American companies.
Mr Trump’s latest tirade also heaps pressure on the EU, which enforces strict rules under its Digital Services Act.
Meanwhile, Royal Mail has now suspended parcel shipments to the US after Mr Trump axed a tax break on low-value imports.
Products valued at $800 (£600) or less will no longer be eligible for duty-free entry under the previous “de minimus” exemption. UK goods will now encounter a 10 percent tariff, while EU items will be hit even harder with a 15 percent tariff.
Only gifts under $100 (£75), along with letters and cards, will escape the new charges.
The changes, effective Friday, have sparked turmoil for shoppers and sellers reliant on sending low-value items across the Atlantic.
Royal Mail, along with other European postal services, has paused shipments to the US to avoid the looming tariffs.
The company warned customers to expect delays as it works to adapt to the new regulations.
