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(Reuters) - The administration of U.S. President Donald Trump has told Britain it will not get a free trade deal unless it drops a new tax proposal for major U.S. tech companies, the Telegraph newspaper reported late on Friday.

Britain had said in October it would tax the revenues of companies such as Alphabet Inc’s Google, Facebook Inc and Amazon.com Inc to create a fairer tax system that had not kept pace with changing digital business models.

U.S. officials are demanding that Britain drops the new ‘Digital Services Tax’ before it becomes law in autumn, according to the report.