Deal or No Deal? US and UK Tech Deal Implementation Comes to a Halt 

In September, the United States and United Kingdom expressed an interest in collaborating on technology developments and regulation (mainly AI, quantum computing, and civil nuclear energy) with the Technology Prosperity Deal. US President Donald Trump and UK Prime Minister Keir Starmer made the $42 billion agreement during the former’s second state visit to the UK. It included plans for US-based big tech companies (such as Microsoft, Google, Nvidia, and OpenAI) to make major investments in the United Kingdom.

As of December 15, however, Washington is delaying the enactment of the deal, reportedly due to London’s current technology and food regulation. The UK has maintained its digital services tax (2% of the revenue of big tech companies, many of which are US-based) despite US threats against it and negotiations on the same topic. It also is maintaining its food safety standards, which bar many American products from entering its market. 

The United Kingdom remains optimistic, claiming that it is still in talks with the United States and that it is “confident” that a deal will be secured. A concrete deal and US investment could help London’s struggling tech sector keep up with new developments in AI and even create 5,000 jobs. It could also help strengthen relations with the US and provide more relief following the Trump administration’s unprecedented new tariffs, notably impacting UK steel exports.

Both nations assert the deal is still in development, with negotiations potentially continuing in January.

Read more here:

• Paul Sandle and Sam Tabahriti, Reuters

• Eleni Courea, The Guardian 

• Liv McMahon, BBC