U.S. Suspends AI Pact With UK Over Trade Frictions

The United States has paused a key technology agreement with the United Kingdom. This deal, called the "Technology Prosperity Partnership," was first announced in September during President Donald Trump's state visit to London. It aimed to support joint work in AI, quantum computing, and nuclear energy. However, according to a Financial Times report, talks have stalled due to broader trade disagreements.Claim 50% Off TipRanks Premium and Invest with Confidence Unlock hedge-fund level data and powerful investing tools designed to help you make smarter, sharper decisions Stay ahead of the market with the latest news and analysis so your portfolio is always positioned for maximum potential The deal has not been canceled but has been placed on hold. According to British officials, the pause came last week. One reason for the freeze is that U.S. trade negotiators want more movement from the UK on issues outside of the tech space. These include food rules and industrial product standards. So far, the UK has agreed to allow 13,000 tons of U.S. beef to enter the country without tariffs each year. Still, U.S. officials are seeking broader access for other agricultural goods. In short, Washington wants the UK to accept more of its food and safety standards. For now, those requests have not been formalized in the deal. Digital Taxes and Pharma Still in Play In addition, some U.S. concerns touch on digital service taxes. These taxes target tech firms like Alphabet (GOOGL), Meta Platforms (META), and Amazon (AMZN), and apply to revenues made in the UK. Still, one UK official said this issue is not at the center of the current talks. According to that person, the bigger challenge is reaching an agreement on tough trade rules that cover product labeling and food safety. Meanwhile, a separate deal involving medicine trade is still moving forward. That deal allows the UK to sell more pharmaceutical goods to the U.S. without added tariffs. In return, the UK has agreed to increase spending on drugs through its national health service. The White House described this deal as "historic" and said it is still on track. Investor Takeaway The pause does not affect existing deals with U.S. tech firms. However, it could delay new partnerships or cross-border activity in advanced tech. While both sides have said talks remain active, the situation shows that technology deals can become linked to bigger trade issues. At this stage, companies in the AI, energy, and cloud space are unlikely to face direct impacts, though further delays in U.S.-UK talks may affect regulatory clarity in areas like safety rules and digital taxes. For investors, the main point is that broader trade tensions can influence cross-border tech deals, even when both sides want them to succeed. We used TipRanks' Comparison Tool to align all the publicly traded companies that signed deals in the UK during Donald Trump's September visit.