The U.S.-U.K. trade deal announced in May has stalled after the Trump administration paused a related technology agreement, citing unresolved disputes over digital regulation, food safety and market access.
Britain was the first country to reach a trade agreement with President Donald Trump, though key elements were left undefined at the time of the announcement.
The New York Times reported that the administration informed the British government this month that Washington would stop moving forward on the Tech Prosperity Deal, according to people familiar with the decision who were not authorized to speak publicly.
The technology pact covered cooperation on artificial intelligence, nuclear energy and research, but its implementation was explicitly tied to progress on the Economic Prosperity Deal signed in May.
The administration determined that Britain had not taken sufficient steps to lower the trade barriers outlined in that agreement.
The Tech Prosperity Deal was unveiled during President Trump's September visit to Britain and was promoted as evidence of developing trade ties.
At the time, major U.S. technology companies announced more than $40 billion in planned investments in Britain, including spending on data centers and artificial intelligence infrastructure.
The text of the technology agreement stated that it would only take effect alongside substantive progress in formalizing and implementing the May trade framework.
The May deal included firm commitments to reduce tariffs on British car exports to the United States within a quota and to expand access for U.S. beef exports to Britain.
Other provisions were left unresolved, including U.S. requests for greater agricultural access, changes to Britain's food safety standards and revisions to Britain's digital services tax.
The Trump administration has also raised objections to Britain's online safety rules and its digital services tax, which primarily affects large American technology companies.
Britain has not changed its digital services tax or reached a new agreement on food exports since the deal was announced.
British Business and Trade Secretary Peter Kyle met with U.S. officials in Washington, D.C., last week to discuss advancing the trade agreement.
Britain's Department for Business and Trade said both sides agreed to continue negotiations in January, including discussions on tariffs, whisky, steel and critical minerals.
A British government spokesperson said the United Kingdom remains committed to ensuring the Tech Prosperity Deal delivers benefits for people in both countries.
A spokeswoman for the U.S. Trade Representative declined to comment.
The Trump administration has announced limited trade agreements with 15 countries, though several have faced delays as negotiators work to convert political commitments into finalized trade text.
Jim Mishler ✉
Jim Mishler, a seasoned reporter, anchor and news director, has decades of experience covering crime, politics and environmental issues.
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