U.S. Pauses U.K. Tech Pact Over Trade Frictions

Overview

• British officials told the Financial Times that Washington halted implementation last week and confirmed the pause on Monday.
• The suspension is linked to frustrations over wider trade talks, with U.S. negotiators pressing for concessions outside the technology partnership.
• London describes the U.S. side as very tough negotiators but says it is almost certain it can steer the talks back on track.
• The September “technology prosperity” agreement focused on cooperation in AI, quantum computing and atomic energy and was announced alongside a roughly $380 billion bilateral investment pledge.
• Russian Direct Investment Fund head Kirill Dmitriev wrote that Russia could replace the U.K. in a U.S. tech deal, framing it as his view rather than a formal proposal.