US halts implementation of tech agreement with UK over trade frictions

The United States has temporarily halted the implementation of a technology cooperation agreement reached with the United Kingdom during Donald Trump’s state visit to Britain, per The Financial Times.

The US–UK “technology prosperity deal,” unveiled in September, was designed to deepen collaboration in strategic fields such as artificial intelligence, quantum computing and nuclear energy.

British officials confirmed on December 15 that the US suspended the agreement last week. One UK official said the Trump administration was pressing London to make concessions in trade areas that extend beyond the scope of the technology partnership.

The suspension comes as trade negotiations between the United States and the United Kingdom continue following a May agreement that eased the most severe tariffs imposed by Trump on British goods. Sources familiar with the talks said US negotiators have grown increasingly dissatisfied with what they see as the UK’s reluctance to address so-called non-tariff barriers, including regulatory standards governing food and industrial products.

Under the existing trade arrangement, the UK agreed to allow up to 13,000 tonnes of US beef to enter the country each year without tariffs. The deal also committed both sides to continue efforts to improve market access for additional American agricultural exports. Washington has long sought UK recognition of US food and agricultural standards, though the agreement stopped short of spelling out concrete commitments in this area.

Trump has also repeatedly criticised digital services taxes imposed by several US trading partners, including the UK, arguing that they unfairly target American technology companies. However, a British official involved in the talks downplayed the significance of the issue, insisting that the tax was not a major obstacle. “The digital services tax is a red herring,” the official said, adding that negotiations had now reached some of their most complex stages. “Both sides expect this to take time, but the dialogue remains open, active and constructive.”

UK Business Secretary Peter Kyle and Science Secretary Liz Kendall travelled to the US last week for meetings with technology executives, although their visit had been scheduled before Washington’s decision to suspend the tech agreement. Another UK official described US negotiators as “very tough,” but expressed confidence that the talks could be put back on track.

A spokesperson for the UK government stressed that the bilateral relationship remains solid, saying the country remains committed to ensuring the technology prosperity deal delivers tangible benefits for people in both nations.

Earlier this month, the UK announced plans to increase National Health Service spending on medicines after the US agreed to lift tariffs on British pharmaceutical exports. A White House official said on Monday that the pharmaceutical agreement was “historic” and confirmed that both sides would continue working toward full implementation of the wider trade deal.

By Tamilla Hasanova