Matthew Sinclair, director of the CCIA’s London office, added: “There are huge opportunities for the U.K. in digital trade with the United States and the government should do everything it can to minimize the risks that tax policy undermines progress in this area.”
Regulation under threat?
While digital trade deals typically center on highly technical, if valuable, issues like data flows, cooperation on international standards, and regulatory compatibility, the presence of several self-described free-speech tech billionaires in Trump’s inner circle mean other dislikes could get aired too.
Musk, who has made a number of cuts to X’s content moderation teams since taking over, slammed Starmer in August as “the biggest threat to free speech we’ve seen in our history,” and has criticized the U.K.’s Online Safety Act.
Meta CEO Mark Zuckerberg, meanwhile, justified an overhaul of his company’s content policies with a warning that “Europe has an ever-increasing number of laws institutionalizing censorship.” He has described fines issued by European regulators as “almost like a tariff.”
Damian Collins, a former minister who helped draft the online rulebook under the Conservative government, has warned that Zuckerberg’s move is “a clear signal that a major challenge will come from the Trump administration against tech laws like the Online Safety Act… [which] will most likely be made through trade negotiations.”
A recent report by IPPR think tank, which has close ties to the Labour leadership, said that while the U.K. should “signal its openness” to U.S. trade talks, online safety regulation was one area it should set “clear red lines.”