The government of former Prime Minister Andy Burnham has stated that the United Kingdom is ready to discuss US concerns about its digital services tax (DST) amid renewed pressure from the White House.
Former President Donald Trump threatened in June to impose 100 percent tariffs against European countries that apply digital services taxes to American technology companies. Trump’s chief trade representative, Jamison Greer, told The Times in an interview published on Monday that this threat “is not a bluff,” and that the president’s demands for foreign governments to abandon such taxes are “very serious.”
“We remain open to discussing US concerns and cooperating with international partners,” a UK government representative said in response to Greer’s comments. He added that the tax is designed to ensure that companies pay a fair share of taxes in the UK in proportion to the value they receive from operating in the country. The UK intends to abolish it “after reaching a global solution.”
Tensions over digital services tax
Last year, the DST generated over 1 billion pounds sterling, mainly from American technology companies, and has repeatedly angered former President Trump. The UK government has so far resisted calls to abandon the tax, including during last year’s trade negotiations.
The UK‑US Economic Prosperity Agreement, signed by Trump and Andy Burnham‘s predecessor, Keir Starmer, did not mention the DST. However, it provided that both parties would continue discussions aimed at increasing digital trade and eliminating non‑tariff barriers.
Jamison Greer also added in the interview with The Times that the US administration will not set “artificial deadlines,” and that relations with his British counterparts, including Trade Minister Jonathan Reynolds and the Prime Minister’s Business Advisor Varun Chandra, are positive.
Source: Politico
