London – The United States has paused plans for a US-UK technology deal announced in September citing trade frustrations with the UK, according to various news reports. The deal, including billions of dollars in tech company investments in the UK, was announced during President Trump’s visit.
Though the UK published a review of its Digital Services Tax last month, which largely targets US companies, it has yet to express any intention of repealing it. While many countries are either shelving or repealing digital taxes aimed largely at U.S. technology companies, the UK’s 2 percent DST, which took effect in 2020, collected $1 billion from largely U.S. companies in 2024.
The Computer & Communications Industry Association has advocated for open markets since 1972.
The following can be attributed to CCIA Senior Director and head of CCIA’s London office, Matthew Sinclair:
“The technology deal was good news for investment and innovation in both countries, and it is unfortunate that lack of progress in broader trade issues resulted in its implementation being suspended. The UK and the US have many interests in common as the largest global exporters of digital services, and both sides should prioritize cooperation on a deal that is in keeping with our longstanding relationship. The UK should do more to address barriers to trade in digital services, whether that is taxes that single out US multinationals or regulators wielding unprecedented powers without the guardrails that should protect companies against disproportionate or simply misguided attacks on their businesses.”
