The threat puts pressure on the UK and the EU, which both struck recent trade agreements with the US. The EU has in place regulations to limit the power of big tech companies through the Digital Services Act, and several member states including France, Italy and Spain have digital services taxes in place.

US officials have criticised the UK’s digital services tax (DST), which was introduced in 2020 and was kept in place after the trade deal with the Trump administration that was reached in May.