Trump threatens uk with tariffs over digital services tax

US President Donald Trump has warned the UK that it could face tariffs if it doesn't drop its digital services tax on American tech firms.

Trump says uk's tax on us tech companies 'won't be tolerated'

In an Oval Office statement, Trump claimed the UK's 2% levy on tech giants like Facebook and Google was a 'small and petty' move.

He threatened to impose a 'big tariff' on the UK if the tax remains in place, effectively retaliating against the UK's attempt to generate revenue from the presence of its biggest tech players.

Downing Street officials have yet to comment on Trump's ultimatum, but sources close to the British government suggest they are unwilling to back down.

With the UK already experiencing a post-Brexit economic slump, some experts believe the government would be reluctant to provoke a trade war with its largest ally.

However, others argue that the UK's financial interests could be at stake if it fails to comply with Trump's demands.