US Suspends $40 Billion Tech Deal with UK Amid Regulatory Disputes

LONDON/BENGALURU – December 16, 2025
The United States has suspended the implementation of a major technology deal with the United Kingdom valued at approximately $40 billion, known as the “Tech Prosperity Deal”, which includes cooperation in fields such as artificial intelligence, quantum computing, and civil nuclear energy, according to Reuters.

The deal was announced during President Donald Trump's official visit to the UK last September as a framework to enhance the bilateral partnership in trade and technology. However, British officials confirmed on Tuesday that Washington decided to temporarily halt the implementation amid US dissatisfaction with London's approach to what the US describes as non-tariff barriers.

Sources indicate that points of contention include digital safety regulations, online content regulation, digital services tax, and food and industrial goods safety restrictions. The deal includes investment commitments worth billions from major US tech companies, including Microsoft, Google, Nvidia, and OpenAI, aimed at bolstering their investments in the UK.

The US is the largest trading partner of the UK, with American tech firms having already invested billions in the British market. In this context, British Trade Minister Peter Kyle visited the US last week for discussions with officials and tech companies, emphasizing the importance of maintaining momentum in executing all aspects of the agreement.

A spokesperson for UK Prime Minister Keir Starmer stated that the negotiations are "not easy by nature," stressing that the relationship with Washington remains strong and talks are ongoing. The British government confirmed that digital regulations and taxes are off the negotiating table, despite a previous agreement in May that allowed for increased US meat exports without compromising British standards.

Informed sources have confirmed that the deal has not been canceled, but rather postponed as part of negotiating pressures, with discussions expected to resume in January. No immediate comment has been issued from the White House.