Jonathan Reynolds, UK trade secretary, will on Tuesday attempt to fend off the threat of swingeing US tariffs, but Britain’s digital services tax remains a major source on contention with the Trump administration.
Reynolds will hold talks in Washington to try to win an exemption for Britain from Donald Trump’s global “reciprocal” tariffs, due in early April, while talks on a new UK/US economic deal are under way.
But the US president has argued that the digital services tax levied by Britain — along with the EU and other countries — is a levy aimed squarely at US tech giants and which should be met with tough tariffs.
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