Bryan Riley, Director of National Taxpayers Union’s Free Trade Initiative, on Thursday released the following statement in response to the announced U.S.-United Kingdom (UK) trade deal:
“The UK is a critically important economic and diplomatic partner. Last year, U.S.-UK trade volume exceeded $148 billion. Tearing down any and all trade barriers with our close allies, like the UK, should be a top priority for the Trump Administration.
While the deal announced today takes some steps toward reducing trade barriers and will hopefully resolve any trade hostilities that have arisen, it unfortunately retains high tariffs on imported goods and fails to make meaningful progress toward a “zero-for-zero” trade arrangement.
A major unaddressed standout here is the UK's burdensome, discriminatory digital services tax (DST) that falls largely on U.S. companies. DSTs are a growing threat to American competitiveness, and should not be allowed to proliferate, especially from our most important trading partners.
If imports from the UK hold at 2024 levels, American consumers and businesses will be on the hook for a $6.8 billion tax hike under this deal.
Hopefully, President Trump will be more successful in future trade negotiations with other countries and will be able to cut taxes for American workers and businesses.”