“They think they're going to make an easy buck. That's where they've taken advantage of our country,” said Trump late Thursday. "We've been looking at it, and we can meet that very easily by just putting a big tariff on the U.K.”
Citing his “obligation to protect” American companies, the President doubled down on the threat, warning the British government to be “careful” as “if they don’t drop the tax... we'll reciprocate by putting something on that's equal or greater than what they're doing."
"Our position on that is unchanged. It is a hugely important tax to make sure that those businesses continue to pay their share. So it is a fair and proportionate approach to taxing business activities in the U.K.,” a Downing Street spokesperson told TIME.
Just last week, Trump warned that the U.K.-U.S. trade deal reached in 2025—which was heralded at the time for its “reciprocity and fairness”—could be changed.
Trump has lashed out repeatedly at British Prime Minister Keir Starmer for refusing to get actively involved in the Iran war. He criticized Starmer's initial refusal to grant U.S. access to British military bases at the start of the war, claiming it cost American forces crucial time.
In turn, Starmer recently said he was “fed up” with people in the U.K. encountering economic instability due to the actions of Trump during the war, the fallout of which has sparked a worldwide energy crisis.
TIME has been unable to independently said email and has reached out to the Pentagon for comment.
They added: "We've expressed this position previously clearly and consistently to successive U.S. Administrations and nothing is going to change that."
These latest threats against the U.K. come just days before King Charles III and Queen Camilla are set to make a highly-anticipated state visit to the U.S., where they will be hosted by Trump for a banquet dinner at the White House.
Here’s what to know about the tax that Trump is taking issue with and where the U.K.-U.S. relationship now stands.
The first £25 million ($33.7 million) in revenue gained from U.K. users by these companies is not taxed by the government.
A 2022 audit of the tax from the British National Audit Office found that in the first year of its implementation, around 90% of the total revenue came from five businesses, with 18 companies paying the tax as a whole that year.
The Canadian government then announced its decision to rescind the tax “in anticipation of a mutually beneficial comprehensive trade arrangement with the United States.”
Can King Charles’ state visit to D.C. save the "special" U.K.-U.S. relationship?
With the visit of British royals now just days away, Trump is eyeing up the meeting with King Charles and Queen Camilla as an opportunity to reestablish a stronger connection between London and Washington.
Praising the royal family, who he has long admired, Trump referred to Charles as a “great man, a brave man.”
During the visit, the President also met with Starmer at his country residence, Chequers, where the pair signed a “groundbreaking” billion-dollar technology prosperity deal.
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