Prime Minister Andy Burnham visits the Met Office in Exeter on Aug. 14, 2026 —Press Association—APThe U.K. government has indicated its willingness to reconsider its digital services tax amid increasing pressure from the Trump Administration.The concession came in response to an interview published Monday in which U.S. Trade Representative Jamieson Greer told The Times that President Donald Trump’s threats to scrap a trade deal with Britain and impose a 100% tariff were “not a bluff.”When asked if the interview might lead Downing Street to change its stance on the tax, a government spokesperson told TIME, “We remain open to discussing U.S. concerns and working with partners internationally.”The digital services tax imposes a 2% levy on the revenues of “search engines, social media services, and online marketplaces which derive value from U.K. users.” Several other European countries, including Portugal, Spain, and Poland, have also implemented similar taxes.Greer said Britain was using American companies as “piggy banks” and that he was “not going to tolerate that.”“We have very good relations with the U.K. We’ve had very constructive relationships, we’d love to keep talking to them about this issue. The President is quite serious about digital services taxes all over the world,” he said.Read More: Why Trump Is Threatening to Impose a ‘Big Tariff’ on the U.K.“This tax is about making sure that businesses pay their fair share of U.K. tax based on the value they derive from U.K. activities. It is an interim measure, and we are still committed to removing it once a global solution is in place,” the spokesperson said, adding that both countries “share a strong trading relationship.”A White House official tells TIME that “the Administration continues to address digital services taxes and other tech issues with our trading partners.”Rising trade tensions between the U.S. and the U.K.The U.K. and the U.S. agreed to a “groundbreaking” Tech Prosperity Deal in September 2025, which was expected to bring billions of dollars in investment from U.S. tech companies into the U.K. technology sector.However, relations between the two countries have splintered since the onset of the Iran war."This is not Winston Churchill we're dealing with," Trump said of former British Prime Minister Keir Starmer at the height of tensions in March, as he accused the former U.K. leader of "ruining" relations.Trump later warned the U.K. that he would implement a “big tariff” in April if the country did not drop its digital services tax on U.S. tech companies. And in June, he threatened to impose a 100% tariff on imports from any country that taxes digital services provided by U.S. companies.“This tariff will supersede trade deals made with the country, whether implemented, signed, or not,” Trump said June 26.The Trump Administration has not yet made any official tariff announcements linked to these threats.However, the U.K. government, which has recently come under new leadership, has signaled that it is open to discussions.Burnham aims to bridge relations between the two nationsPrime Minister Andy Burnham, who took office in July, has indicated intentions to mend the relationship between the two countries.Asked whether there was a deadline for discussions with the new Burnham government, Greer declined to set one, instead emphasizing cooperation with the U.K.“I don’t set artificial timelines. All I know is the President is eager to enforce our trade policy, he’s eager to make sure our companies aren’t discriminated against,” he said.Since taking office, Burnham has appeared keen to repair relations with Trump. The two have spoken by phone, and Burnham extended an invitation for Trump to visit Manchester in the future—where the 2027 G20 summit is rumored to be taking place and where Burnham served as mayor before becoming Prime Minister.But he may be hesitant to remove an important source of revenue for the U.K.Between 2021 and 2025, the tax generated more than £2.4 billion ($3.2 billion) in revenue for the British government.Read More: ‘We Won’t Be Bullied’: U.K. Responds to Russian Threat Over Ukraine Drone SupportTrump has pushed the U.K. on policy in the past, including his consistent calls for Britain to allow new North Sea oil and gas licenses—something the Starmer government intended to ban.On the eve of Burnham’s entry to Downing Street, Trump claimed: “The people of Aberdeen, in Scotland, are dancing in the streets because the new Prime Minister, Andy Burnham, has stated that he will be opening up, all the way, the invaluable North Sea Oil."Burnham has signaled that he is open to reconsidering Britain’s access to North Sea oil and gas.“I’ve got something of an open mind, you know. I don’t have a sort of fixed position,” he said in early June.Trump has continued to tout the new British Prime Minister’s willingness to reconsider the issue.“One of the things he is going to do, I think he's going to open up the North Sea. That'll make the U.K. pretty rich,” Trump said on Monday in the Oval Office.Burnham, however, has yet to make a final decision.