Threatening to impose "high tariffs," Trump pressures the UK to cancel digital services tax

U.S. President Trump has threatened that if the UK government does not scrap the digital services tax, the United States will impose “high tariffs” on the UK. The UK’s digital services tax mainly applies to revenue earned in the UK by large search engines, online social media platforms, and online marketplaces, at a rate of 2%, covering major U.S. tech companies such as Apple, Google, and “Metaverse” platforms. It is reported that the UK government is unwilling to easily give up this source of tax revenue. Last November, UK Chancellor of the Exchequer Rachel Reeves stood firm against pressure from the U.S. and refused to completely abolish the digital services tax. The UK Treasury previously said that this tax would continue to be implemented until a global tax rate agreement is reached. In recent times, disagreements between the UK and the U.S. over issues such as the digital services tax, online regulation, and technology cooperation have been growing. Analysts believe that Trump’s renewed use of tariff pressure reflects that friction between the UK and the U.S. in trade and technology regulation is still ongoing. (CCTV News)