US senators warn UK digital services tax could derail trade talks

07/22/2020

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Aime Williams | Financial Times

Top members of the US Senate committee overseeing trade have issued a warning shot to the UK over its hopes of a swift deal because of the country’s newly implemented digital services tax.

Chuck Grassley, the Republican chairman of the Senate finance committee, and Ron Wyden, the committee’s top Democrat, said that London’s digital services tax “unnecessarily complicates the path forward for a US-UK trade deal”, and urged the UK to “reconsider this punitive action against its ally”.

The finance committee typically must approve any full trade agreement struck by the US administration.

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