Donald Trump has threatened to launch a new trade war against Britain.
The President warned he would slap 100 per cent tariffs on imports to the US on any country that imposes a tax on tech giants.
And he said it would come into force immediately, overriding any existing deals he has done.
It could mean fresh economic pain for the UK, which already has a Digital Services Tax.
The two per cent levy on the revenues of foreign social media and search engine firms was introduced in 2020 and raised £944million in 2025-26.
If President Trump goes through with his threat it could mean the end of the 10 per cent tariff rate he agreed for most UK goods last year.
He wrote on his Truth Social platform on Friday: ‘Numerous European Countries have been discussing the imminent implementation of a Digital Services Tax on American Companies.
‘Some of these Countries are close to actually doing this.’
‘Please let this statement serve to represent that any Country that imposes such a Tax will immediately be met with a 100% TARIFF on any and all Goods sent to the United States of America.’
This echoes a threat he made specifically to the UK earlier this year.
He told reporters at the White House in April: ‘We’ve been looking at it and we can meet that very easily by just putting a big tariff on the UK, so they better be careful.
‘If they don’t drop the tax, we’ll probably put a big tariff on the UK.’
