US-UK Tech Deal Suspended Amid Stalled Trade Talks
The TRUMP administration has suspended a $41 billion technology deal with the UK, citing frustrations over sluggish progress in broader trade negotiations. The freeze, confirmed by British officials, follows weeks of mounting tensions as both nations struggle to resolve disputes over tariffs and regulatory barriers.
Announced during President Trump's September state visit, the agreement now languishes in limbo. US negotiators have grown impatient with Britain's reluctance to address non-tariff barriers, particularly concerning food and industrial goods standards. While the UK recently permitted tariff-free imports of 13,000 tonnes of US beef, the concession came with explicit caveats about ongoing discussions regarding American agricultural access.
Digital services taxes imposed by the UK on US tech companies have further complicated matters. One British official dismissed the issue as a 'red herring,' arguing it shouldn't obstruct the broader deal. The impasse reflects deeper challenges in post-Brexit trade diplomacy as both nations jockey for economic advantage.
