The United States has paused the implementation of a $40 billion “Tech Prosperity Deal” with Britain over concerns about UK digital regulation and food safety standards.
The deal, covering artificial intelligence, quantum computing, and civil nuclear energy, was agreed during President Donald Trump’s state visit to the UK in September.
The big picture: Progress on the implementation has been slow, with prior talks in other sectors like steel stalling but an agreement on pharmaceuticals reached earlier this month.
- U.S. officials are said to be frustrated with Britain’s online safety regulations, digital services tax, and restrictions on food imports.
- British officials insist they will not compromise on their standards and that negotiations are ongoing.
- UK ministers say the tariff deal reached in May increased US beef exports without lowering British food standards.
Driving the news: Major American tech companies – including Microsoft, Google, Nvidia and OpenAI – have pledged to invest tens of billions of dollars in Britain as part of the deal.
- British Trade Secretary Peter Kyle recently visited the US to advocate for momentum on the deal, with both sides agreeing to continue negotiations in January.
- The US is Britain’s largest trading partner, with significant American investment in the UK technology sector.
