GUARDIAN
Big US technology companies have been offered a significant tax cut by Keir Starmer in return for lower tariffs from Donald Trump’s administration as the UK braces itself for a global trade war.
The Guardian understands the UK government is willing to reduce the headline rate of its digital services tax (DST) in an attempt to placate the US president, while at the same time applying the levy to companies from other countries.
The move, which would represent a significant concession to US tech firms, comes after the prime minister decided not to ditch the tax entirely as it currently raises £800m a year and government finances are already stretched.
As the White House prepares to impose global trade barriers that could throw Labour’s tax and spending plans into chaos, experts warned that Trump’s 25% levy on car imports alone could put 25,000 UK jobs at risk.