The United States has suspended negotiations with the United Kingdom over a bilateral technology trade agreement, the Financial Times reported on Tuesday, Dec. 16. Citing unnamed British officials, the report stated that the talks were halted by Washington last week.
The proposed “technology prosperity deal” was first announced in September during a state visit to the U.K. by U.S. President Donald Trump. The agreement was designed to foster collaboration between the two nations in advanced technology sectors, including artificial intelligence, quantum computing, and nuclear fusion.
At the time of the announcement, President Trump stated the deal would “ensure our countries lead the next great technological revolution side by side.”
U.K. Prime Minister Keir Starmer described the agreement in September as a “generational step change in our relationship with the U.S.” that would deliver “growth, security and opportunity up and down the country.”
According to the joint plan released by both governments in September, the agreement included establishing AI-enabled research programs. These programs were intended to focus on mutual priorities such as developing AI for biotechnology, creating precision medicine for cancer and other diseases, and advancing fusion energy.
In response to the Financial Times report, a spokesperson for the U.K. government provided a statement to the press.
“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 spokesperson said.
The U.S. Department of Commerce has been contacted for comment.
The development comes as the U.K. government has pursued significant investment in its technology sector. In September, officials announced deals with U.S.-based companies including Microsoft, Nvidia, and Google, totaling £31 billion ($41 billion), aimed at expanding the country’s AI infrastructure.
The United States is the United Kingdom’s largest single trading partner.
