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The United States has suspended a major technology partnership with the United Kingdom that was designed to strengthen cooperation in artificial intelligence, quantum computing, and civil nuclear energy, according to a report by the Financial Times. The move marks a significant setback in U.S.-UK tech relations and highlights growing trade tensions between the two allies.
British officials confirmed that the U.S. halted the agreement last week. The deal, known as the “Tech Prosperity Deal,” was originally agreed upon in September during U.S. President Donald Trump’s visit to Britain. It aimed to deepen collaboration in cutting-edge technologies, boost innovation, and reinforce strategic ties between the two countries in key future-facing sectors.
According to the Financial Times, the Trump administration is now pressing Britain to make concessions beyond the scope of the technology agreement, particularly in broader trade negotiations. U.S. officials have reportedly grown increasingly frustrated with what they see as Britain’s reluctance to address non-tariff trade barriers. These include regulatory frameworks governing food standards, agricultural imports, and industrial goods, which Washington views as obstacles to freer trade.
The suspension reflects a broader pattern in U.S. trade policy under President Trump, who has consistently pushed trading partners to reduce regulatory barriers and open markets to American goods and services. While the technology deal focused on cooperation rather than tariffs, U.S. negotiators appear to be leveraging it as part of a wider strategy to extract trade-related concessions.
Reuters noted that it was unable to independently verify the Financial Times report. Both the White House and the British government declined to immediately comment on the matter, leaving uncertainty about how long the suspension may last or what specific concessions the U.S. is seeking.
The United States remains Britain’s largest trading partner, and American technology companies have invested billions of dollars in the UK, particularly in areas such as cloud computing, artificial intelligence research, and digital infrastructure. Analysts warn that prolonged tensions could undermine investor confidence and slow progress in emerging technologies that both countries consider strategically vital.
As negotiations continue, the future of the U.S.-UK tech partnership will likely depend on whether broader trade disputes can be resolved without derailing cooperation in critical innovation-driven sectors.
