The United States has paused a major technology agreement with the United Kingdom, a move that highlights growing tensions in ongoing trade negotiations between the two countries.
US President Donald Trump has suspended a technology partnership valued at around £31 billion that was announced earlier this year during his high-profile state visit to the UK. The agreement, promoted as a “technology prosperity deal,” was signed alongside UK Prime Minister Keir Starmer and focused on cooperation in artificial intelligence, quantum computing, and nuclear energy.
According to officials in London, the suspension occurred during a recent visit to Washington by UK Business Secretary Peter Kyle. The decision is reportedly linked to unresolved disagreements over the broader UK-US trade framework, which remains incomplete despite earlier announcements suggesting progress.
Sources familiar with the talks say the Trump administration is seeking additional concessions, particularly around agricultural exports. Washington is pushing for expanded access to UK markets and wants Britain to recognize US food and farming standards, an issue that has long raised concerns among UK regulators and consumers.
Earlier this year, both sides agreed to a preliminary trade arrangement, but many details were left unsettled. While the UK agreed to allow 13,000 tonnes of US beef to enter the country without tariffs, there was no formal commitment to align food safety rules. Despite this, the technology deal was publicly showcased in September, creating expectations that negotiations were further along than they actually were.
UK officials have attempted to downplay the impact of the suspension, stating that it will not have immediate economic consequences. However, uncertainty remains around other unresolved areas, including steel exports to the United States, which could still be affected by future decisions from the White House.
Last week, Peter Kyle and Science Secretary Liz Kendall met with US technology executives as part of a previously scheduled visit. That trip went ahead even though the technology portion of the agreement had already been paused.
The Financial Times quoted a British official describing US negotiators as “very tough,” while expressing confidence that talks could still be revived.
A UK government spokesperson emphasized that cooperation remains a priority, stating that the relationship between the two countries continues to be strong and that both sides remain committed to making the technology partnership work for workers and businesses in the US and the UK.
For many observers, the episode underscores how unpredictable trade negotiations have become under the current US administration, with agreements often used as leverage rather than settled through stable, long-term planning.
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