US President Donald Trump has threatened to impose "a big tariff" on the UK if it does not drop its digital services tax on US social media companies.

Axar.az informs, citing Sky News, the tax, which was introduced in 2020, imposes a 2% levy on the revenues of a number of major tech firms.

It targets companies whose worldwide revenues from digital activities exceed £500m, with more than £25m of the revenues from UK users.

Speaking to reporters on Thursday, Mr Trump warned the UK it "better be careful", insisting that any tariff would be "more than what they're getting" from the levy.

The US president said: "We've been looking at it and we can meet that very easily by just putting a big tariff on the UK, so they better be careful.

"If they don't drop the tax, we'll probably put a big tariff on the UK."