Tech Turbulence: The Paused U.S.-UK Deal

The United States has halted a $40 billion technology agreement with Britain, citing concerns over British digital regulations and food standards. The 'Tech Prosperity Deal,' focusing on AI and quantum computing, stalled despite close ties, as ongoing trade discussions face hurdles. Negotiations are expected to resume next year.

The United States has paused its $40 billion technology agreement with Britain, a move officials attribute to unease in Washington over London's approach to digital regulation and food standards. The 'Tech Prosperity Deal,' initially formed during President Donald Trump's visit, aimed to enhance cooperation in artificial intelligence, quantum computing, and nuclear energy.

Despite Britain's welcome of the deal as evidence of robust ties and Prime Minister Keir Starmer's diplomatic rapport with Trump, implementation has faced delays. While a preliminary agreement to reduce U.S. tariffs was reached in May, progress has stalled in sectors such as steel, though a pharmaceutical framework was recently established.

British authorities confirmed the pause, with the New York Times reporting U.S. discontent with Britain's online safety laws, digital services tax, and food safety protocols. Still, UK ministers maintain the deal's potential benefits, underscoring an ongoing commitment to collaborate with the U.S. for mutual prosperity in the tech sector.

(With inputs from agencies.)