RE: Information16 Dec 2025 10:05
Donald Trump has suspended a landmark tech agreement with the UK in a blow to Sir Keir Starmer’s hopes of forging closer ties with the US.
The “tech prosperity deal” was announced as part of Mr Trump’s state visit to Britain in September and came alongside £31bn in investments from some of the biggest companies in Silicon Valley.
However, the White House has paused work on the deal, which covered artificial intelligence (AI), nuclear energy and quantum computing, blaming the UK’s slow progress.
The suspension, first reported by the New York Times, has emerged as the White House demands improved terms in other areas of trade.
The deal was contingent on progress on a separate “economic prosperity deal” agreed in May, which was designed to boost trade in cars, beef and pharmaceuticals.
MPs have said implementation of the deal has been “haphazard”, while the White House has reportedly become irritated at the lack of headway on relaxing safety standards to allow more US imports.
White House officials have also expressed frustration over Britain’s online safety laws and digital services tax, which is primarily levied on US companies. The Treasury confirmed in a recent review that the tax would continue.
A government spokesman said: “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.”
The tech prosperity deal included commitments to working together on AI, space, nuclear energy, quantum computing and satellite navigation.
When it was signed, Sir Keir said it marked “a generational step-change in our relationship with the US”.
Peter Kyle, the Business Secretary, and Liz Kendall, the Technology and Science Secretary, travelled to the US last week and met US officials as well as tech companies.
It is unclear whether suspending talks on the deal will affect US corporate commitments to invest in Britain.
Microsoft said in September that it would invest £22bn in Britain, including in data centres and an AI supercomputer. Nvidia, Google and OpenAI also made major spending commitments.
The deal also came alongside a series of nuclear agreements, including between British Gas owner Centrica and US company X-Energy to build a series of small nuclear reactors.
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