UK–US Tech Prosperity Deal Talks Stall Amid Wider Trade Concerns

Hadisur Rahman, JadeTimes Staff

H. Rahman is a Jadetimes news reporter covering the USA

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Image Source: Reuters

Talks between the United Kingdom and the United States over a much-publicised Technology Prosperity Deal have stalled, amid growing concerns in Washington about what it views as broader UK trade barriers. Downing Street confirmed that the UK remains in “active conversations with US counterparts at all levels of government,” but acknowledged that negotiations remain complex.

The Technology Prosperity Deal was unveiled during US President Donald Trump’s state visit to the UK in September and was described at the time as a “historic” step forward in bilateral relations. The agreement aimed to deepen cooperation in advanced sectors such as artificial intelligence, quantum computing, and nuclear technology, positioning both countries as global leaders in critical technologies.

However, the BBC understands that progress has slowed due to US concerns extending beyond technology, including disagreements over digital regulation and food safety standards. The New York Times first reported that these broader trade issues were now affecting the tech negotiations. Neither the UK government nor the White House has commented directly on these specific claims.

On Tuesday, US science adviser Michael Kratsios indicated that the Trump administration hopes to restart talks, linking progress on the tech deal to the UK’s implementation of commitments under the wider US-UK Economic Prosperity Deal signed in May. Writing on X, Kratsios said Washington looked forward to continuing collaboration across AI, quantum, and nuclear technologies once sufficient progress had been made.

Despite the stalled talks, major US tech firms’ investment plans in the UK appear unaffected. Alongside the announcement of the Tech Prosperity Deal, companies including Microsoft, Nvidia, and Google pledged a combined £31bn in UK investment, largely aimed at expanding AI infrastructure such as data centres. Nvidia chief executive Jensen Huang previously described the UK as a potential “AI superpower,” aligning with the UK government’s ambitions.

Trade experts suggest the impasse reflects a piecemeal approach to UK-US negotiations, with progress in one sector increasingly tied to unresolved issues in others. While uncertainty remains, analysts believe the current standoff is likely part of broader bargaining rather than a sign of a fundamental breakdown in the transatlantic tech partnership.