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UK to proceed with digital tax despite US tariff threats

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UK to proceed with digital tax despite US tariff threats

The U.K. will push through with plans to introduce a 2% tax on digital companies' U.K. online revenues despite the U.S. government's threats of retaliatory tariffs, the London's Financial Times reported, citing a spokesperson for British Prime Minister Boris Johnson.

Washington had argued that the tax discriminates unfairly against tech companies such as Amazon.com Inc. and Alphabet Inc.'s Google LLC.

On the other hand, U.S. and France had agreed to a tariff ceasefire regarding the levy dispute, although French Economy and Finance Minister Bruno Le Maire said the negotiations are "far from won."

The U.K. was one of several countries that pledged to proceed with their respective digital tax implementations amid Washington's threats of retaliation.