Biden administration threatens tariffs on UK goods in ‘tech tax’ row

Islamnews- The US has warned it could put tariffs of up to 25% on a host of UK exports in retaliation for a UK tax on tech firms.

The duties are designed to raise $325m, the amount the US believes the UK tax will raise from US tech companies.

A UK government spokesperson said it wanted to “make sure tech firms pay their fair share of tax”.

They added: “Should the US proceed to implement these measures, we would consider all options to defend UK interests and industry.”

Washington is pressing ahead with the action, initiated under President Trump, and has scheduled hearings on the list.

The UK and US held talks about the digital services tax on 4 December, and UK government sources stressed that the tariff list was being seen as procedural rather than an escalation.

The tariffs are now subject to a consultation in the US over the next few weeks.

At the Budget, the Office for Budget Responsibility calculated the digital services tax would raise £300m in the current financial year, and as much as £700m in future years.

Source : BBCNEWS