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Warns, "I don't like American companies being targeted."
In BBC interview, pressures PM Starmer on North Sea oil drilling and immigration policy.
U.S. President Donald Trump criticized the UK's continued Digital Services Tax (DST), warning on the 23rd (local time) that if it is not abolished, substantial tariffs would be imposed.
According to the British daily The Telegraph, President Trump told the newspaper, "If they don't get rid of that tax (DST), we're probably going to put a very big tariff on the UK."
Reuters reported that President Trump made these remarks to reporters at a White House event.
According to The Telegraph, President Trump said, "I don't like them targeting American companies. Whether you like them or not, they're American companies and they're the best companies in the world."
When asked what kind of tariffs the UK would face, President Trump said, "More than they're making."
The UK introduced the DST in 2020, which imposes a tax of about 2% on the revenue that multinational tech giants generate from UK users. Both the U.S. Joe Biden administration and the second Trump administration have opposed it.
Several countries, including France, Italy, Spain, Austria, and Turkey, have introduced DST, but among them, 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 Korean won) annually, a 17% increase from 808 million pounds (approximately 1.614 trillion Korean won) in the previous year.
The UK's tax fiscal year runs from April 6th each year to April 5th of the following year.
The UK Treasury's initial position was that DST would be temporary until an agreement on global corporate tax was reached, but the Trump administration's opposition to such international tax reform has heightened tensions between the two countries.
UK Treasury Secretary Rachel Reeves stated in November last year her intention to maintain the DST despite pressure from the U.S. to abolish it.
Although President Trump threatened to impose massive tariffs on the UK, it appears that he currently has no immediate means to do so.
Since the federal Supreme Court ruled in February this year that the so-called 'reciprocal tariffs' imposed by President Trump since last year based on the International Emergency Economic Powers Act (IEEPA) were illegal, the U.S. government has been imposing a uniform 10% tariff on all countries based on Section 122 of the 1974 U.S. Trade Act.
However, this authority cannot be used to target specific countries individually.
Furthermore, the duration is initially limited to 150 days, and congressional approval is required to continue imposing it beyond that period.
President Trump's latest remarks putting pressure on the UK are particularly noteworthy as they come ahead of the scheduled state visit of King Charles III and his wife Queen Camilla to the United States from the 27th to the 30th.
In a roughly 5-minute phone interview with the BBC on the 23rd, President 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, regarding UK Prime Minister Keir Starmer, he reacted coldly, saying, "If he changes course, such as opening up the North Sea and having a tougher immigration policy, then (relations with the U.S.) could be restored, but as of now, that's not the case, and if he doesn't do that, there will be no opportunity."
President Trump has repeatedly urged the UK to increase oil and gas extraction from North Sea oil fields.
Regarding President 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 a war with Iran."
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