The United States has reportedly put on hold a technology agreement with the United Kingdom, citing dissatisfaction with the progress of trade discussions.
Trade Concessions Stall Talks
The U.S.-UK “Technology Prosperity Deal,” announced in September, was intended to foster collaboration in areas such as artificial intelligence, quantum computing, and nuclear energy. However, the U.S. has now suspended the deal, expressing frustration over the pace of trade negotiations, as reported by the Financial Times.
British officials attributed the suspension to the Trump administration’s desire for UK concessions in non-tech trade areas. The U.S. has been pushing for the UK to address non-tariff barriers, including food and industrial goods regulations.
The White House and British government did not immediately respond to Benzinga‘s requests for comment.
Despite the UK agreeing to admit 13,000 tonnes of U.S. beef each year, Washington is pushing for wider access for its agricultural products, according to FT. The U.S. has also been urging the UK to align with American food and agricultural standards—an issue not covered in the agreement.
UK officials maintained that the digital services tax, which affects U.S. tech companies, is not a significant issue, according to the report.
High-Stakes Tech Pact In Limbo
The paused tech deal focused on boosting cooperation in AI, semiconductors, telecoms, and quantum computing to deepen ties between the two countries’ tech sectors. It was also a high-stakes deal for major U.S. companies such as BlackRock Inc. (NYSE:BLK), Anthropic, and OpenAI, which were planning to expand their base across the Atlantic.
Tech giants like Microsoft (NASDAQ:MSFT), and Google’s parent company, Alphabet Inc. (NASDAQ:GOOG) (NASDAQ: GOOGL) have already invested over $40 billion into the UK market.
The U.S. is Britain’s largest trading partner.
In June, a landmark trade agreement between President Donald Trump and British Prime Minister Keir Starmer came into effect, reducing U.S. tariffs on UK cars and providing duty-free access for Rolls-Royce engines.
More recently, the two nations reached an agreement to eliminate tariffs on British pharmaceutical products being exported to America.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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