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.
Donald Trump has threatened to slap tariffs on countries that refuse to scrap taxes targeting US tech giants[/caption]
On his Truth Social platform, he fumed: “Digital taxes, legislation, rules or regulations are all designed to harm, or discriminate against, American technology.”
Vowing to protect US firms, Mr Trump declared: “As the president of the United States, I will stand up to countries that attack our incredible American tech companies.
“I will impose substantial additional tariffs on that country’s exports to the USA, and institute export restrictions on our highly protected technology and chips.”
Downing Street moved to defuse tensions, with a spokesperson for Sir Keir Starmer insisting: “The US is our closest ally, and we’ll always talk to them about any issues.
“We’ve got a very constructive relationship with the US across many issues.”
The UK’s DST, introduced in 2020, has been a point of contention for years, with Washington repeatedly criticising it as punitive towards American firms.
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.
Items worth $800 (£600) or less will no longer qualify for duty-free entry under the old “de minimus” exemption, with UK goods now facing a 10 per cent tariff and EU items hit even harder at 15 per cent.
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.
