The United States has paused implementation of a $40 billion technology agreement with Britain amid concerns in Washington over London’s digital regulations and food standards, according to officials cited by Reuters.
The agreement, known as the Tech Prosperity Deal, was announced during President Donald Trump’s state visit to Britain in September and was framed as a flagship partnership covering artificial intelligence, quantum computing, and civil nuclear energy. At the time, both governments highlighted the deal as evidence of close transatlantic ties and a shared commitment to advancing cutting-edge technologies.
However, British officials confirmed on Tuesday that the United States has stalled implementation of the agreement. The New York Times first reported the move, saying U.S. officials were frustrated by Britain’s online safety rules, its digital services tax, and restrictions on food imports. Reuters reported that these issues have become sticking points despite broader efforts to deepen economic cooperation.
The pause comes against the backdrop of uneven progress on other trade initiatives. Britain became the first country in May to agree in principle to lower some U.S. tariffs, but implementation has moved slowly. Talks on sectors such as steel have stalled, though the two sides agreed to a framework pharmaceutical deal earlier this month.
British ministers have said the tariff agreement allowed increased U.S. beef exports without compromising UK food standards and have insisted that digital regulation and the digital services tax are not open to negotiation. A spokesperson for Prime Minister Keir Starmer declined to comment in detail on what were described as “live negotiations,” but said the relationship with Washington remained strong. “Negotiations of this kind are never straightforward,” the spokesperson said, adding that both sides were still engaged in active talks.
Under the Tech Prosperity Deal, Britain and the United States agreed to cooperate on AI and quantum technologies, while companies including Microsoft, Google, Nvidia, and OpenAI pledged tens of billions of dollars in investment in Britain. The United States is Britain’s largest trading partner, and U.S. technology firms have already invested heavily in the UK.
British Trade Secretary Peter Kyle visited the United States last week, raising the importance of maintaining momentum on the agreement. Both sides agreed to continue negotiations in January, Reuters reported.
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