UK Offers US Lower Digital Tax

The UK government offered significant tax cuts to US tech companies. The proposal was made ahead of US President Donald Trump's announcement of new tariffs.

According to The Guardian, UK Prime Minister Keir Starmer has offered to reduce the headline rate of its digital services tax (DST), while continuing to apply the standard levy to companies from other nations. The newspaper reported the UK currently raises around £800 million a year from DST, with big US players paying a 2% levy on the UK revenue.

Technology taxation and antitrust fines against the likes of Apple, Google, and Microsoft have been on Trump’s agenda since he took office for a second time. Speaking at this year’s World Economic Forum in Davos, Trump aimed at EU regulators for ongoing cases against US tech companies, branding fines resulting from them as a form of taxation. Trump has lobbied against digital taxation across the world and issued an executive order in February, vowing to defend American companies and innovators from overseas extortion and unfair fines and penalties.