KEY POINTS
- Deal signed during President Trump’s state visit to Britain.
- Focus areas include artificial intelligence and quantum computing.
- Civil nuclear energy cooperation also part of the agreement.
- US cites concerns over wider UK trade barriers.
- Deal valued at £31 billion according to British officials.
- Washington seeks concessions beyond technology partnership.
- UK expresses confidence talks can be brought back on track
ISLAMABAD: The United States (US) has suspended the implementation of a technology cooperation deal with the United Kingdom (UK), the White House said on Tuesday.
Michael Kratsios, head of the White House Office of Science and Technology Policy, said the decision was taken because the UK must make “substantial progress” on trade talks for the cooperation to resume.
Tech Prosperity Deal
The agreement, formally known as the Tech Prosperity Deal, was signed during US President Donald Trump’s state visit to the UK in September. It was intended to build partnerships in key areas including artificial intelligence, quantum computing and nuclear energy.
Kratsios announced the suspension in a post on X.
In line with Section III of the US-UK Technology Prosperity Deal, we hope to resume work with the United Kingdom once the UK has made substantial progress in implementing its commitments under the Economic Prosperity Deal.
We look forward to continuing our productive… https://t.co/JJqK2Y8cov
— Director Michael Kratsios (@mkratsios47) December 16, 2025
US trade barriers
According to the BBC, the deal has been stalled due to US concerns over what it views as wider UK trade barriers. The £31 billion ($41.6 billion) agreement had earlier been described by British Prime Minister Keir Starmer as “a generational step change” in US–UK ties.
“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 was quoted as saying.
US frustrations grow
Earlier, the Financial Times reported that Washington suspended the deal amid growing frustration over the pace of trade talks with London. British officials confirmed that the suspension took place last week, with one official saying the Trump administration was seeking UK concessions in trade areas beyond the tech partnership.
People familiar with the negotiations said the US officials were becoming increasingly frustrated with Britain’s reluctance to address the so-called non-tariff barriers, including rules governing food and industrial goods. The New York Times, which first reported the development, said the two sides also had broader disagreements over digital regulations and food safety rules.
Talks not over
A British official was quoted as saying that US negotiators were “very tough,” but expressed confidence that the talks could be brought “back on track.”
According to a memorandum of understanding released by the British government in September, the Tech Prosperity Deal outlined a shared interest in strengthening science and technology capabilities and standards to usher in a new “golden age of innovation.” The agreement aimed to enhance cooperation in strategic fields such as artificial intelligence, civil nuclear fusion and quantum technologies, with both sides expressing a desire to deliver tangible benefits to their citizens.
