UK Weighs Digital Tax Changes to Avoid US Steel Tariffs

The UK government is negotiating with the US over potential adjustments to its digital services tax to secure exemptions from tariffs, including a 25% levy on British steel.

The UK government is in talks with the US to prevent tariffs on British steel, with discussions centered on possibly altering or scrapping the digital services tax (DST).
The DST, introduced in 2020, raises £800m annually by taxing large tech companies like Meta and Amazon, but has been criticized by the US as discriminatory.
Chancellor Rachel Reeves has confirmed ongoing negotiations, emphasizing the need to balance reducing tariffs with maintaining fair taxation policies.
The Liberal Democrats and some Labour MPs have criticized potential DST changes, arguing they would benefit US tech giants while welfare cuts disproportionately impact vulnerable populations.
Labour's recent welfare cuts, including £5bn in disability benefit reductions, have intensified domestic criticism as the government navigates trade talks with the US.