Donald Trump warned that the United States will respond with significant tariffs if Britain continues imposing its digital services tax on major American technology companies.

The dispute centers on the United Kingdom’s 2% levy on digital revenues, introduced in 2020, which has drawn criticism from both Trump and Joe Biden.

Speaking to reporters at a White House event, Trump made clear that further action could follow if the policy remains in place.

“If they don’t drop the tax, we’ll probably put a big tariff on the UK,” the president told reporters ⁠during a White House event.

The comments come just days before a planned visit by King Charles III to the United States.

Trump said he believes the king could play a role in easing tensions between Washington and London, as relations between the two allies have shown signs of strain in recent months.