The US has suspended implementation of a technology deal it struck with the UK during Donald Trump’s state visit to Britain, amid growing frustrations in Washington over the progress of trade talks.
The US-UK £31bn technology prosperity deal, announced in September, was meant to boost co-operation on artificial intelligence, quantum computing and nuclear energy, but is now sitting on ice.
British officials on Monday confirmed the US suspended the deal last week, with one saying the Trump administration was pushing for UK concessions in trade areas well outside tech.
Trade talks have rumbled on since May, when sides agreed to ease the worst of Donald Trump’s tariffs on British goods, with the New York Times first reporting the suspension.
People familiar with the talks said US officials were increasingly frustrated with the UK’s reluctance to tackle non-tariff barriers, such as food and industrial regulations.
Although the UK agreed to allow 13,000 tonnes of US beef into the country tariff-free each year, the deal said the sides would keep working to improve access for more American farm products.
The US has long wanted the UK to recognise American food and agricultural standards, but the agreement stopped short of spelling out any binding commitments.
Trump has also sought to roll back digital services taxes imposed by US trading partners, including the UK, which hit American tech firms squarely.
One UK official brushed that aside, saying: “The digital services tax is a red herring. We are down to negotiating some of the most difficult issues. Both sides expect this to take some time. But the dialogue remains open, active, and constructive."
UK business secretary Peter Kyle and science secretary Liz Kendall travelled to the US last week to meet tech leaders, although the trip was planned before the suspension landed.
Another British official said their US counterparts were “very tough negotiators, but we are pretty sure we can get this back on track”.
A UK government spokesman said: “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.”
Earlier this month, the UK said it would increase NHS spending on medicines after the US agreed to waive tariffs on British drug exports.
A White House official said the pharmaceutical pact was “historic” and that the US and UK would “continue to work towards full implementation” of the trade deal.