UK Debates Digital Tax as Trump’s Steel Tariffs Loom

The UK government considers changes to its digital services tax to negotiate tariff exemptions, prompting criticism over potential economic and social impacts.

Donald Trump plans to impose a 25% tariff on British steel starting April 2, prompting urgent UK-US trade negotiations.
The UK is reviewing its digital services tax, which generates £1bn annually, as part of pre-planned 2025 evaluations but faces US pressure to alter or repeal it.
Labour Chancellor Rachel Reeves confirmed ongoing discussions, emphasizing the need to balance trade priorities while avoiding higher tariffs on British exports.
Critics, including Liberal Democrat leader Ed Davey, accuse Labour of appeasing Trump, warning against tax changes that could harm public welfare and jobs.
Labour MPs and unions express concerns over welfare cuts and public sector job losses, while the UK also promotes itself as a hub for AI investment during US trade talks.