UK companies are preparing for significant operational disruption after US President Donald Trump renewed threats to impose a 100% tariff on goods from nations maintaining digital services taxes on American technology firms.
The warning, issued via Truth Social, targets countries including the UK that have levied taxes on US tech giants, escalating an ongoing transatlantic trade dispute.
Business leaders in London are expressing concern that such a punitive measure would severely impact export-dependent sectors and complicate supply chains.
The threat marks a sharp escalation from previous trade rhetoric, moving from targeted levies to a blanket penalty on all imports from non-compliant jurisdictions.
This development adds to the uncertainty facing UK exporters, who are already navigating post-Brexit trade adjustments and global economic headwinds.
The potential tariffs would affect a broad range of UK exports, from automotive parts to consumer goods, potentially reversing recent trade normalization efforts.