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The UK-US Trade Deal signed on May 8, 2025, reduces tariffs on US goods but maintains a 10% tariff on UK exports, with key focus areas in automotive, aerospace, and agriculture.
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Despite strong anticipation, the deal does not address the UK’s 2% Digital Services Tax (DST), which significantly impacts major US tech firms and contributes £800 million annually.
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US President Trump, a known critic of the DST, is expected to raise the issue in future negotiations, hinting at possible changes to its application on US digital companies.
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Until any renegotiation occurs, US tech companies operating in the UK must continue to comply with current DST rules and monitor developments closely to anticipate regulatory changes.
Source: vatabout.com
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