The concession came in response to an interview published Monday in which U.S. Trade Representative Jamieson Greer told The Times that President Donald Trump’s threats to scrap a trade deal with Britain and impose a 100% tariff were “not a bluff.”
The digital services tax imposes a 2% levy on the revenues of “search engines, social media services, and online marketplaces which derive value from U.K. users.” Several other European countries, including Portugal, Spain, and Poland, have also implemented similar taxes.
“We have very good relations with the U.K. We’ve had very constructive relationships, we’d love to keep talking to them about this issue. The President is quite serious about digital services taxes all over the world,” he said.
“This tax is about making sure that businesses pay their fair share of U.K. tax based on the value they derive from U.K. activities. It is an interim measure, and we are still committed to removing it once a global solution is in place,” the spokesperson said, adding that both countries “share a strong trading relationship.”
The U.K. and the U.S. agreed to a “groundbreaking” Tech Prosperity Deal in September 2025, which was expected to bring billions of dollars in investment from U.S. tech companies into the U.K. technology sector.
"This is not Winston Churchill we're dealing with," Trump said of former British Prime Minister Keir Starmer at the height of tensions in March, as he accused the former U.K. leader of "ruining" relations.
“This tariff will supersede trade deals made with the country, whether implemented, signed, or not,” Trump said June 26.
However, the U.K. government, which has recently come under new leadership, has signaled that it is open to discussions.
Burnham aims to bridge relations between the two nations
Asked whether there was a deadline for discussions with the new Burnham government, Greer declined to set one, instead emphasizing cooperation with the U.K.
Since taking office, Burnham has appeared keen to repair relations with Trump. The two have spoken by phone, and Burnham extended an invitation for Trump to visit Manchester in the future—where the 2027 G20 summit is rumored to be taking place and where Burnham served as mayor before becoming Prime Minister.
Between 2021 and 2025, the tax generated more than £2.4 billion ($3.2 billion) in revenue for the British government.
Trump has pushed the U.K. on policy in the past, including his consistent calls for Britain to allow new North Sea oil and gas licenses—something the Starmer government intended to ban.
Burnham has signaled that he is open to reconsidering Britain’s access to North Sea oil and gas.
Trump has continued to tout the new British Prime Minister’s willingness to reconsider the issue.
Burnham, however, has yet to make a final decision.
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