UK and US Engage in High-Stakes Trade Talks as Tariff Deadline Nears

Prime Minister Keir Starmer and President Donald Trump discuss digital services tax and steel tariffs with April 2 tariff deadline looming.

• The UK government is negotiating with the US to secure exemptions from a 25% tariff on British steel and avoid additional tariffs set to take effect on April 2.
• Discussions include potential changes to the digital services tax (DST), a 2% levy on tech giants that raises £800 million annually but has drawn US criticism for targeting American companies.
• Prime Minister Keir Starmer and President Donald Trump held a late-night phone call on March 23 to discuss progress on an economic agreement, though no final deal has been reached.
• Labour MPs and opposition parties have criticized potential DST changes, arguing they could benefit US tech firms while domestic welfare cuts harm vulnerable populations.
• Chancellor Rachel Reeves has stated that negotiations are ongoing and emphasized the need to balance trade priorities with economic stability and fairness.

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