The US has paused implementation of its “Tech Prosperity Deal” with the UK, a package announced during President Donald Trump’s September visit that pledged co‑operation across artificial intelligence, quantum computing and civil nuclear energy, as well as multi‑billion pound investment from major US technology companies.
British officials confirmed the suspension, with the Financial Times reporting that Washington wants movement from London on areas of trade beyond the tech pact, with concerns focused on non‑tariff barriers such as food and industrial regulations.
A White House official, quoted by the FT, said the pharmaceutical pact between the two countries was “historic” and that both sides would “continue to work towards full implementation” of the broader trade deal.
The Guardian reported the value of the tech package at £31 billion and said pledged spending included £22 billion from Microsoft and £5 billion from Google. The agreement also outlined an artificial intelligence “growth zone” in north‑east England that UK officials said could bring up to £30 billion and create 5,000 jobs. However, the text stated it only “becomes operative alongside substantive progress being made to formalise and implement” it.
UK ministers have sought to play down the development. “Our special relationship with the US remains strong and the UK is firmly committed to ensuring the Tech Prosperity Deal delivers opportunity for hardworking people in both countries,” a UK government spokesperson said, according to Reuters.
One British official told the FT that the US side was pushing for concessions outside the tech partnership, while another said American counterparts are “very tough negotiators, but we are pretty sure we can get this back on track”.
Trade discussions this year have included US frustration at the UK’s digital services tax, a 2 per cent levy on revenues of large tech companies. A British official quoted by the FT described the tax as “a red herring” and insisted talks remain “open, active, and constructive”.
The US has also pressed for changes to the UK’s food safety regime. While Britain agreed tariff‑free access for 13,000 tonnes of US beef annually, ministers have restated their commitment not to weaken farming standards, a stance that keeps contentious products such as chlorine‑washed chicken and hormone‑treated beef out of UK shops.
Trump previously said the deal would help the US and UK “dominate” in artificial intelligence and “ensure our countries lead the next great technological revolution side by side.”
In a parallel dispute with the UK’s national broadcaster, Trump has filed a lawsuit in Florida seeking up to $10 billion in damages against the BBC over the editing of a Panorama programme that stitched together lines from his 6 January 2021 speech. The BBC acknowledged the edit gave “the mistaken impression” he had “made a direct call for violent action,” apologised, and said there was no basis for a defamation claim.
Trump told reporters: “In a little while, you’ll be seeing I’m suing the BBC for putting words in my mouth… They had me saying things I never said,” while BBC chair Samir Shah said the corporation was “determined to fight” the case.
Liberal Democrat leader Sir Ed Davey urged the prime minister to “stand up for the BBC against Trump’s outrageous legal threat” and protect licence fee payers.
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