UK-US $40bn Tech Prosperity Deal Paused Amid Trade Disputes; US Warns EU Tech Firms
The UK Downing Street has stated that the $40bn Tech Prosperity Deal with the US is not permanently stalled and remains in active discussions at all levels of government. The deal was paused following US accusations that the UK had failed to lower trade barriers, including maintaining a digital services tax on US tech firms and certain UK food safety regulations.
The initial reports of the pause and stalled negotiations came from the New York Times, with confirmation from Keir Starmer's office. Requests for comment from both the White House and Downing Street were not immediately answered.
Separately, the Trump administration has warned European tech firms of potential economic penalties if the EU does not reverse what it terms discriminatory actions against US services. The United States Trade Representative (USTR) has accused the EU and some member states of discriminatory and harassing lawsuits, taxes, fines, and directives aimed at US services. In contrast, the USTR highlighted that European firms such as Accenture, DHL, Spotify, and Siemens currently operate freely in the US under the existing system.
In response, an EU Commission spokesperson emphasized that EU rules apply equally to all firms and will be enforced fairly without discrimination. Notably, the EU recently fined Elon Musk's X $140 million for violations of the Digital Services Act, citing issues including a deceptive blue-check design, lack of transparency in the advertising repository, and failure to provide researchers with access to public data.
