Impact of the Liberal Democrats Proposed Increase to the UK Digital Service Tax

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.