Trump threatens ‘big tariff’ on UK unless Starmer drops key policy

• Donald Trump threatened the UK with substantial tariffs unless it abandons its digital services tax on American tech companies.
• The levy, introduced in 2020, imposes a 2 per cent charge on the revenues of major US tech firms, including Apple, Alphabet's Google, and Meta.
• Trump stated that if the UK does not drop the tax, the US would impose tariffs “equal or greater” than the revenue generated by the levy.
• The digital services tax targets companies with worldwide digital revenues exceeding £500 million and over £25 million from UK users, and has been a source of tension in UK-US relations.
• These remarks were made ahead of a scheduled state visit by King Charles and the Queen to the US, amidst broader strains in the relationship between the two countries.

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