Washington: Talks between the UK and the United States over the proposed Technology Prosperity Deal have stalled, with US officials raising concerns about what they see as broader UK trade barriers.
Downing Street said the UK remains in active conversations with US counterparts at all levels of government on the wide-ranging tech partnership, despite the slowdown. The deal was billed as ‘historic’ when it was unveiled during US President Donald Trump’s state visit in September, with both countries pledging closer cooperation in areas including artificial intelligence and quantum computing.
The Prime Minister’s official spokesman declined to comment on the specifics of what he described as ‘live’ discussions, but said negotiations of this nature were never straightforward and stressed confidence in securing an agreement that could shape the future for millions on both sides of the Atlantic.
According to reports, there are broader disagreements between the two sides, including over digital regulations and food safety rules, although the UK government has not commented on these claims. The White House has also not responded to requests for comment.
However, Trump’s science adviser Michael Kratsios said the administration hoped to restart talks once the UK had made substantial progress in implementing its commitments under the wider US–UK Economic Prosperity Deal, signed earlier this year. Michael Kratsios said Washington was looking forward to continuing collaboration across AI, quantum, nuclear and other critical technology areas.
When the Technology Prosperity Deal was announced, the UK government highlighted its potential economic impact, with Prime Minister Sir Keir Starmer describing it as a ‘generational step change’ in the bilateral relationship. Technology Secretary Liz Kendall said it would ‘transform lives across Britain’ and represent a vote of confidence in the UK’s AI sector.
Alongside the announcement, US tech giants including Microsoft, Nvidia and Google outlined $41.37 billion (£31 billion) in planned investment in the UK, largely aimed at scaling up AI infrastructure such as data centres. Those investment plans are believed to be unaffected by the current pause in negotiations.
The technology pact was set out in a non-binding memorandum of understanding, which linked progress on tech cooperation to substantive advances in the broader Economic Prosperity Deal. Analysts say the impasse reflects a piecemeal approach to trade negotiations, with unresolved issues in other sectors now spilling over into technology talks, though some believe the standoff may amount to little more than posturing within wider negotiations.
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