The Trump administration has halted a major technology agreement with the United Kingdom worth $41 billion — abruptly disrupting one of the largest joint projects in artificial intelligence, quantum computing, and nuclear technology ever planned between the two governments.
British officials confirmed that the cooperation was “frozen” last week after U.S. negotiators lost patience with the slow progress of broader trade talks.
A deal announced during Trump’s state visit collapses amid unresolved trade disputes
The technology partnership was originally unveiled in September during President Trump’s state visit to London. It was intended to symbolize a strengthened strategic alignment between the two nations as the global economy pivots toward advanced technologies.
However, the broader trade negotiations tied to the agreement have been stalling since May — largely due to U.S. demands to ease UK regulatory barriers on food imports and industrial goods.
U.S. negotiators argue that the UK’s strict standards are blocking access for American companies. Even though Britain agreed to allow 13,000 tons of American beef per year without tariffs, Washington expects significantly wider market access.
London, meanwhile, has resisted these demands — particularly the push to adopt U.S. food safety standards.
Digital Services Tax remains a source of friction
President Trump has repeatedly criticized the UK’s Digital Services Tax, which affects major American tech companies. British officials, however, insist that the tax is being exaggerated as a problem, suggesting it is not the true reason for the delay.
According to one UK official, the real issue is the complexity of the broader trade disagreements — disputes that cannot be resolved quickly or superficially.
UK delegation continues U.S. visit despite the freeze
Even as Washington paused the tech deal, UK Business Secretary Peter Kyle and Science Minister Liz Kendall were already in the United States to meet with leading U.S. technology companies. Their visit continued as planned, signaling Britain’s intent to keep relations stable.
UK negotiators described the American side as “extremely tough,” yet maintain confidence that the deal can be brought back on track.
Official London: the partnership with the U.S. remains strong
The British government issued a reassurance stating that the “special relationship” with the U.S. remains solid and that the UK remains committed to ensuring the tech prosperity agreement creates economic opportunities on both sides of the Atlantic.
However, this diplomatic tone cannot hide the fact that cooperation on AI and quantum technologies has been paused — and its future depends on resolving disputes over trade barriers, standards, and tariffs.
Pharmaceutical deal stands out as a rare recent success
Just weeks earlier, another agreement between the two nations succeeded: the UK agreed to increase NHS pharmaceutical spending after the U.S. removed tariffs on British medical exports.
The White House called the pharma deal “historic,” stating that both countries remain committed to fully implementing the broader trade framework.
The bottom line
The $41 billion technology partnership between the U.S. and the UK is currently at a standstill. Both sides assert that talks continue, but unresolved disagreements over market access, standards, and tariffs remain major obstacles.
Unless these deeper structural issues are resolved, the much-publicized “US–UK tech renaissance” may be in jeopardy before it truly begins.
#TRUMP , #usa , #UK , #Geopolitics , #USPolitics
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