
President Donald Trump has threatened to impose a 100 per cent tariff on the UK if the Labour Government implements tax on US companies.Taking to Truth Social, the leader of the Free World confirmed the sizable levy will be imposed on any country that introduces a digital services tax.Multiple countries, including the UK, are considering introducing such a charge on tech and social media firms that operate in their respective nations.On Truth Social, President Trump posted: “Numerous European Countries have been discussing the imminent implementation of a Digital Services Tax on American Companies.Donald Trump to hit UK with 100% tariffs ‘IMMEDIATELY’ if Labour imposes tax | GETTY”Some of these countries are close to actually doing this. Please let this statement serve to represent that any country that imposes such a tax will immediately be met with a 100 per cent tariff on any and all goods sent to the United States of America. “This tariff will supersede trade deals made with the country, whether implemented, signed, or not. Additionally, the 100 per cent TARIFF will be immediately imposed if they proceed.”Introduced in 2020, the UK’s digital services tax is charged at two per cent on the revenues of some of the largest US companies.Among these firms are Apple, Facebook and Instagram owner Meta, and Alphabet’s Google.Countries are exploring taxes on US-based tech companies | GETTY The Chancellor has faced criticism for over-taxing the private sector and making life harder for businesses | RACHEL REEVES / LINKEDIN In April, President Trump issued a similar threat over digital service taxes and suggested sizable tariffs will be levied on any country that has one.The UK tax targets companies whose worldwide revenues from digital activities exceed £500million, with more than £25million of the revenue from UK users.According to a 2025 Treasury review, the levy raised more than £800million in 2024–25, up from £678million in 2023–24.Despite the White House resident’s protests, UK taxpayers want high corporation taxes placed on giant global technology companies.Earlier this week, a survey from the Fair Tax Foundation revealed that 67 per cent of respondents are of the opinion that the Government should charge higher digital services taxes on multinational technology groups “to increase their overall tax contribution in the UK”.Paul Monaghan, the foundation’s chief executive, said: “This research demonstrates that the UK is still at its core a fair tax nation.”The UK public care about many issues, but ‘tax justice’ is consistently at the top of their concerns when it comes to corporate conduct.”They want to see government do much more to ensure that all businesses, both large and small, pay their fair share of tax.”