US threatens UK with tariffs on exports over planned digital tax

Houses of Parliament

Exports including jewellery, furniture and game boards could all face tariffs being exported across the Atlantic, with the US targeting British products in response to any digital tax.

The Biden administration has reportedly drawn up plans to target over £236m worth of UK goods in response to any attempt by Britain to levy a technology tax, which Washington believes would be “unreasonable or discriminatory” and place a burden on United States businesses.

The US chief trade negotiator Katherine Tai said it would keep all options open “including, if necessary, the imposition of tariffs” and warned markets including the EU that it could take action if they introduced digital services taxes.

A UK government spokesperson said it wanted to “make sure tech firms pay their fair share of tax”.

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