US threatens UK with export tariffs over online tax

Biden Trump online tax levy
The previous Trump administration had first instigated the use of tariffs in response to any technology tax
// The Biden administration is targeting over £236m worth of UK goods in response to any attempt by the UK to levy a technology tax
// Exports such as jewellery, furniture and game boards are at threat of facing tariffs
// US chief trade negotiator, Katherine Tai said it would keep all options open

The Biden administration has revealed plans to target over £236 million worth of UK goods in response to any attempt by the UK to levy a technology tax, which Washington believes would be “unreasonable or discriminatory” and place a burden on US businesses.

Exports such as jewellery, furniture and game boards are at threat of facing tariffs for being exported across the Atlantic, with the US targeting UK products in response to any digital tax.

US chief trade negotiator, Katherine Tai said it would keep all options open, “including, if necessary, the imposition of tariffs”.

She warned markets including the EU that it could take action if they introduced digital services taxes.

Meanwhile, the UK government said it wanted to “make sure tech firms pay their fair share of tax”.

“Should the US proceed to implement these measures, we would consider all options to defend UK interests and industry.”

The previous Trump administration had first instigated the use of tariffs in response to any technology tax.

It pursued such action against India, Austria and Spain, although baulked at levying tariffs against the entire EU bloc.

UK and US trade representatives held talks on a potential digital tax in December, and any potential tariffs are now subject to a consultation in the US over the next few weeks.

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