The United States has put on hold the rollout of a $40 billion technology cooperation agreement with the United Kingdom, citing concerns over Britain’s digital regulation and food standards, according to officials from both countries.
The pause affects the so-called “Tech Prosperity Deal”, a wide-ranging framework covering artificial intelligence, quantum computing and civil nuclear cooperation, which was agreed during U.S. President Donald Trump’s state visit to Britain in September. The deal was presented at the time as a symbol of the two allies’ close economic and technological partnership.
Why the Deal Is on Hold?
British officials confirmed on Tuesday that Washington has slowed implementation of the agreement. U.S. officials have expressed frustration with several UK policies, including:
• Online safety rules governing digital platforms
• Britain’s digital services tax on large technology firms
• Food safety standards, which limit some U.S. agricultural exports
The New York Times first reported the U.S. decision, describing it as leverage amid broader trade negotiations.
Trade Talks Moving Unevenly
The delay comes despite progress earlier this year. In May, Britain became the first country to agree in principle to ease some U.S. tariffs, a move London said would allow greater U.S. beef exports without weakening UK food standards. However, talks in other sectors—most notably steel—have stalled. The two sides did agree a framework deal on pharmaceuticals earlier this month.
UK Response
British ministers insist they remain committed to cooperation with Washington but say some policies are not up for negotiation. A spokesperson for Prime Minister Keir Starmer declined to comment on specifics, citing “live negotiations,” but stressed that relations with the U.S. remain strong.
“Negotiations of this kind are never straightforward,” the spokesperson said, adding that it was normal for each side to prioritise national interests. “These talks are complex, and they take time to secure.”
What the Tech Deal Covers
Under the Tech Prosperity Deal, the UK and U.S. pledged closer collaboration on emerging technologies, including advanced AI systems and quantum computing research. Major U.S. technology firms—such as Microsoft, Google, Nvidia and OpenAI—also committed to investing tens of billions of dollars in Britain, reinforcing the UK’s ambition to position itself as a global tech hub.
Next Steps
The White House did not immediately respond to requests for comment. The U.S. remains Britain’s largest trading partner, and American technology companies already have extensive operations across the UK.
British Trade Secretary Peter Kyle, who visited the United States last week, raised the importance of maintaining momentum on the broader UK–U.S. economic relationship, according to his office. Officials on both sides agreed to continue negotiations, with further talks expected in January.
