Britain is set to escape Donald Trump’s looming tariff blitz as the EU braces for fresh levies over its treatment of American tech companies.
Washington is preparing to launch a Section 301 investigation under the Trade Act 1974 as soon as this month, according to The Times.
The mechanism allows the US to impose tariffs in response to trade practices it considers unfair, with Brussels expected to be firmly in the firing line.
But senior figures familiar with the discussions have indicated that Britain has been left off the list of potential targets.
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The apparent reprieve comes despite Washington continuing to push for the repeal of the UK’s Digital Markets, Competition and Consumers Act.
The legislation gives British regulators powers to fine major technology companies up to 10 per cent of their worldwide turnover.
Mr Trump has repeatedly threatened trade retaliation after American tech giants were hit with fines worth hundreds of millions of euros under the EU’s Digital Markets Act.
His anger intensified in July when the EU imposed an €890million (£760million) penalty on Google over alleged anti-competitive behaviour.
Mr Trump responded by declaring he would “immediately initiate a 301 Investigation into the practice of ‘ROBBING’ American companies and, in turn, the American taxpayer”.
One Trump administration official told The Times: “The timeline and countries are not decided, but they can expect it to cover more than the EU and to be initiated as soon as possible.”
The investigation was not immediately launched as the administration grappled with the fallout from the Supreme Court’s decision in February to strike down sweeping tariffs imposed on major US trading partners.
A source close to the discussions said: “The administration has been distracted for months by getting around the Supreme Court ruling.
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“Now that is done, they are turning their attention back to focused tariff goals, and digital policy is right at the top of that list.”
Once launched, the Section 301 investigation would establish a timetable and potential tariff rate that Washington could threaten to impose.
The administration could still suspend additional duties at the end of the process if negotiations remained under way.
Britain has previously faced a Section 301 investigation over its digital services tax, launched during the final months of Mr Trump’s first term in 2020.
That investigation has yet to result in tariffs being imposed.
Several other countries have introduced or are developing similar regulations targeting major technology companies.
Britain’s apparent reprieve comes as other major US trading partners remain locked in escalating tariff battles with Washington.
Canada was hit with fresh tariffs of up to 50 per cent on $27.6billion (£15billion) worth of goods last month after trade negotiations between the two countries broke down.
Ottawa has vowed to retaliate dollar-for-dollar, announcing tariffs of up to 50 per cent on American products including steel and aluminium, dairy products, appliances and electronics.
The measures are due to come into force on September 8.
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