WASHINGTON: The United States has paused implementation of a high-profile £31 billion ($40 billion) UK-US Tech Prosperity Deal, a flagship trade and technology partnership agreed during President Donald Trump’s state visit in September, amid mounting disagreements over broader UK-US trade issues.
Officials in Washington informed London last week that the technology pact, designed to deepen cooperation on advanced sectors including artificial intelligence, quantum computing and civil nuclear energy, would be put on hold while broader trade negotiations progress, according to British government sources. The decision was confirmed by UK ministers and first reported by the Financial Times.
The pause reflects frustration in the Trump administration over what it views as insufficient British action on non-tariff barriers, notably the UK’s digital services tax and strict food-safety standards, which the U.S. says disadvantage American tech companies and agricultural exports.
Downing Street sought to play down the setback, with a UK government spokesperson saying the “special relationship with the U.S. remains strong” and that London is committed to delivering the opportunities promised by the pact. The spokesperson added that the UK is in "active conversations with US counterparts at all levels of government."
The agreement’s suspension marks a strain in transatlantic economic ties at a sensitive moment in broader U.S.-UK trade talks, and comes as British MPs warn that recent deals with the Trump administration risk being “built on sand.” The Trump White House and British officials have yet to announce a new timeline for restarting formal cooperation.