US President Donald Trump said the United States will retaliate with a "big tariff" if Britain continues to target companies like Apple, Google, and Meta with its technology tax.
The United Kingdom rolled out its 2% digital services tax in 2020, a move that has been criticized by Trump and his predecessor, Democrat Joe Biden.
"If they don’t drop the tax, we’ll probably put a big tariff on the UK," the president told reporters during a White House event.
His comments come ahead of a visit by Britain's head of state, King Charles, next week.
Trump said he believes the monarch could help repair Washington's relationship with the British, which has become strained in recent months.
Tariffs a central topic in Trump's presidency
Since the beginning of Trump's second term, the US president has leveraged taxes as a key economic and foreign policy tool.
His tariffs have been central to a global trade war that was forecasted to generate trillions of dollars of revenue for the US over the next decade, but that has been challenged by the Supreme Court.