US Threatens Retaliatory 25% Tariff on UK over Tech Firms Tax

U.S. lawmakers have warned that they will impose a 25% tariff on multiple goods from the U.K. following a “tech firm tax” imposed by British lawmakers in 2020.

The tariff would affect a whole host of products exported to the U.S., including ceramics, make-up, overcoats, game consoles and furniture. The tariffs are designed to recoup $325 million, which the U.S. expects the U.K. to gain from its imposed taxes on tech firms.

A U.K. government spokesperson made comment on the tariffs, saying that the taxes they imposed were to “make sure tech firms pay their fair share”.

The spokesperson also confirmed that the U.K. would take measures to protect their economy from such tariffs, should the Biden administration plan to enforce them.

The tariffs were originally proposed by former President Donald Trump, but the Biden administration plans to continue forward with the decision and have called the imposed taxes “unreasonable” amongst other adjectives.

Businesses in the U.K. have expressed disappointment in response to the news, with goods from affected industries accounting for $23 million worth of the exports to the U.S. in 2020 and around $31 million in 2019. 

Business leaders have called for U.S. and U.K. officials to meet over the trade disagreement and solve it before it becomes a potential trade war. 


© Fourth Estate® — All Rights Reserved.
This material may not be published, broadcast, rewritten or redistributed.