The UK is looking into ways to alleviate the impact of its digital tax on American technology groups

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The UK is working on options to alleviate the impact of the digital services tax on American technology companies to help secure customs tariffs with the White House, after the Trump administration played a harsh ball in this case.

The British government is open to a set of possibilities, including changes to a fixed rate of 2 percent taxPeople who have seen discussions between the United Kingdom and the United States and their own features said.

The tax can continue to obtain great revenues for Cabinet Even if some of its advantages change, people added.

Such changes can include exempting some sectors from the tax, which increases the revenue exempt allowance to much higher than 25 million pounds, or the profit tax is applied instead of revenue.

Companies that run online markets, search engines and social media companies are currently subject to tax, regardless of whether they are achieving profits in the United Kingdom.

Fear negotiations are underway with the US President Donald Trump’s team to see if Britain can avoid global “mutual” global definitions, which are scheduled to be announced on April 2.

Downting Street said on Monday that Sir Kerr Starmer, Prime Minister of the United Kingdom, and Trump spoke on Sunday night to discuss “progress” in the negotiations of commercial deals for economic trade.

Jonathan Reynolds, a UK business and business secretary, was told on Washington last week that Britain should change its tax system to win any of the global global mutual definitions of America.

“When the UK team arrived in Washington, they said:” Let’s talk about an economic deal that includes closer cooperation in Tech and AI. “The American side said it had no interest for them and demanded to know what the UK could offer in terms of tax.”

British government officials have confirmed that tax changes are the main American demand. The Ministry of Business and Trade did not immediately respond to the request for comment.

Trump claimed that the value -added tax imposed by European countries, including the United Kingdom, as well as digital services taxes are discrimination against American companies.

It is unlikely that the VAT system in Britain was raised, as it raised 169 billion pounds last year for the treasury treasury, which suffers from financial hardship. In contrast, the digital services tax is expected to collect about 800 million pounds in 2024-25.

The fixed rate tax is applied by 2 percent, which strikes technology giants including Alphabet, Meta and Amazon, to companies whose global revenues exceed 500 million pounds, and are applied to revenues of more than 25 million pounds derived from the United Kingdom.

Chancellor Rachel Reeves defended the principle of tax on Monday. “The digital services tax is very important,” she said. “It brings about 800 million pounds annually and ensures that companies pay a tax in the country in which they operate.”

Reeves suggested that it will not be completely canceled, adding: “We will continue to make sure that companies are paying their fair share of taxes, including companies in the digital sector.”

Dan Nidel, a tax expert, said he believed that the tax should be canceled because it was “performing” and did not collect much money.

He said: “The argument that is somewhat correct discriminatory,” noting that the tax targeted only a sector as the United States had a special power in the world.

He added that the United States saw that the tax is discriminatory because it applies to revenues instead of profits. He said: “You can be the (car maker) BMW or (the champagne house) Laurent Beirr and not a tax on your revenue.” “But if you are an internet company.”