The US has paused a multi-billion-dollar tech deal with the UK that was agreed in September amid a push for trade concessions, according to media reports on Tuesday.
The landmark tech agreement between Washington and London, called the Tech Prosperity Deal, has been stalled due to US concerns about what it considers to be wider UK trade barriers, the BBC reported.
The £31 billion ($41.6 billion) deal was earlier hailed by British Prime Minister Keir Starmer as "a generational step change" in ties with the US when it was announced during US President Donald Trump's state visit to the UK in September.
"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," a government spokesperson was quoted in the report as saying.
Earlier, The Financial Times (FT) reported that the US suspended the deal amid growing frustrations in Washington over the progress of trade talks with London.
The FT report noted that British officials on Monday confirmed that the US suspended the deal last week, with one saying the Trump administration was pushing for UK concessions in areas of trade outside the tech partnership.
People familiar with the talks reportedly said US officials were becoming "increasingly frustrated" with Britain's lack of willingness to address so-called non-tariff barriers, including rules and regulations governing food and industrial goods.
The New York Times, which first reported the story, said there were "broader disagreements" between the two sides, including over digital regulations and food safety rules.
Another British official said their American counterparts were "very tough negotiators," but that they are "pretty sure" they can "get this back on track."
According to a memorandum of understanding document released by the British government in September, with the Technology Prosperity Deal, both sides expressed mutual interest in science and technology capabilities and standards to usher in the next "golden age of innovation" to fortify freedom and prosperity for generations to come.
The US and the UK also affirmed the common desire to enhance cooperation in science and technology matters that support initiatives of mutual interest that produce tangible benefits to their citizens.
The deal was aimed to enable collaboration toward joint opportunities of mutual interest in strategic science and technology disciplines, including artificial intelligence, civil nuclear fusion, and quantum technologies.
