Analysis of the UK LibDem proposal to triple the UK's Digital Services Tax (DST) reveals that an increase in the DST from 2% to 6% would harm U.S. companies by $2.7 billion USD to $4.4 billion USD per year, costing up to 5,914 American jobs. With pass-through, UK consumers would in aggregate pay 1.5% more (£0.7 billion) yearly for 4.2% less quantity. As USTR has already found that the UK DST is discriminatory and selected potential retaliatory tariffs, a tripling of the DST would likely lead to a swift U.S. response.
