We all know that he cares little for the UK, as he is an avowed Irish nationalist, even if he has to temper it as President.
So it was obvious that we were not going to get any favours from him. However, its turning out to be a little stiffer a lesson than was possibly expected. He has confirmed a possible trade war with us, and it has to be said some other European countries, such as Austria and Spain, although not formally with the EU as a whole.His government has stated that the USA could put tariffs of up to 25% on a number of UK exports such as UK ceramics and fashion items. They are designed to raise $325m (£235.8m), in retaliation for a UK tax on Tech firms such as Google, Facebook etc. The UK tax (digital services tax - DST) taxes the US and other countries Tech firms on their revenues made in the UK (Billions if truth be known), and is designed to stop them simply raiding Britain for revenue, while paying minuscule taxes here.
Now, given that we will no longer be a credible military partner, with our army reduced to a glorified home defence force, we have no real military/geopolitical value to the US .... so Joe isn't bothered about offending us. The US action is ostensibly designed to apply domestic political pressure within the UK and other countries over the imposition of such Tech taxes, and our government has already said that "Should the US proceed to implement these measures, we would consider all options to defend UK interests and industry."
The UK tax is only estimated to raise £300m in the current financial year, but possibly rise to around £700m in future years ... peanuts compared to what those Tech firms generate in the largest English speaking overseas market. Its also a fact that the DST is hoped to merely be a temporary measure, until the US and other international partners find a global solution to this problem of these Tech firms operating globally, but paying corporation taxes in selected locations only, and will be removed when a global solution is put in place.
Personally I would just increase the digital tax rate again to compensate (and make the Tech pips squeak in the USA), and let them put the pressure back on the Biden regime, as I'm sure the US Tech giants would rather just pay up, than risk losing the vast revenues they will still reap, even with DST, in a tit for tat trade war.
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