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Warns, "I don't like targeting American companies."
In BBC interview, pressures PM Starmer on North Sea oil drilling and immigration policy.
Former US President Donald Trump on the 23rd (local time) criticized the UK's maintenance of the Digital Services Tax (DST) and warned that if it is not abolished, significant tariffs would be imposed.
According to the British daily The Telegraph, Trump told the newspaper, "If they don't get rid of that tax (DST), we'll probably put a big tariff on the UK."
Reuters reported that Trump made these remarks to reporters at a White House event.
According to The Telegraph, Trump said, "I don't like targeting American companies. Whether you like them or not, they are American companies and the best companies in the world."
When asked what kind of tariffs the UK would face, Trump said, "More than they're making."
The UK introduced the DST in 2020, which imposes a tax of about 2% on revenues multinational tech giants generate from UK users. Both the US Joe Biden administration and the second Trump administration have opposed it.
While several countries, including France, Italy, Spain, Austria, and Turkiye, have adopted DST, the UK collects the largest DST revenue globally.
According to revenue data for the 2025-2026 fiscal year announced by the UK's HM Revenue & Customs (HMRC) on the 23rd, the UK's digital tax collection reached 944 million pounds (approximately 1.885 trillion won) annually, a 17% increase from the previous year's 808 million pounds (approximately 1.614 trillion won).
The UK's tax fiscal year runs from April 6th of each year to April 5th of the following year.
The UK Treasury initially stated that DST imposition would be temporary until an agreement on global corporate tax was reached, but the Trump administration's opposition to such international tax reforms has escalated tensions between the two countries.
UK Chancellor of the Exchequer Rachel Reeves announced last November her intention to maintain the DST despite US pressure to abolish it.
Although Trump threatened to impose massive tariffs on the UK, it appears he currently has no immediate means to do so.
After the Federal Supreme Court ruled in February this year that the so-called 'reciprocal tariffs' imposed by Trump since last year based on the International Emergency Economic Powers Act (IEEPA) were illegal, the US government has been imposing a flat 10% tariff on all countries under Section 122 of the 1974 US Trade Act.
However, this authority cannot be used to target specific countries individually.
Furthermore, the period is initially limited to 150 days, and congressional approval is required to continue imposing it beyond that.
Trump's latest remarks pressuring the UK are drawing more attention as they come ahead of the state visit of King Charles III and Queen Camilla to the United States, scheduled for October 27-30.
In a roughly five-minute phone interview with the BBC on the 23rd, Trump expressed anticipation when asked if the state visit would help restore relations between the two countries, saying, "Of course. He's a fantastic guy."
However, he showed a cool reaction towards UK Prime Minister Keir Starmer, saying, "If he changes course, such as opening up the North Sea and having a tougher immigration policy, relations with the US could be restored, but not for now, and if he doesn't do that, there will be no opportunity."
Trump has repeatedly called on the UK to increase oil and gas extraction from North Sea oil fields.
Regarding Trump's remarks in the BBC interview, Prime Minister Starmer said, "I make decisions based on the national interest of the UK, not based on what others say or do," adding, "That's why I decided not to get involved in the Iran war."
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