16th December 2025
The trade dealt has not fully collapsed, but parts of it are facing serious setbacks and a key technology component has been paused.
The "Tech Prosperity Deal" a major technology-focused agreement signed during President Trump's state visit in September has now been suspended/put on ice by the United States amid disagreements over broader trade issues and regulatory barriers. The suspension has raised uncertainty and frustration in negotiations.
Reports say this suspension stems from disputes over issues such as non-tariff barriers (like food safety and digital services tax) where the US wants more concessions.
So a significant component is on hold, but the larger bilateral relationship and other trade cooperation efforts are not outright terminated.
What about the main trade agreement?
The broader US-UK Economic Prosperity/Trade Deal agreed earlier in 2025 is still officially in place and has been implemented to some extent, including tariff reductions on certain UK exports (like cars,
It is not a comprehensive free-trade agreement like the UK has with the EU but rather a tariff-reduction and market-access framework negotiated under the Trump-Starmer administrations.
Negotiations and implementation work were always expected to continue over time, rather than all provisions being finalised immediately.
The recent problems are largely about implementation and expectations.
Tech/innovation cooperation — this got paused, which has led some commentators to talk about setbacks or potential collapse of that piece.
Non-tariff regulatory issues — disagreements over regulations on food, digital taxes and other areas are slowing progress and annoying negotiators.
There is still a trade framework and ongoing cooperation between the US and UK.
A major technology agreement has been suspended, and negotiations are experiencing friction.
It would be wrong to characterise the entire US-UK trade deal as "collapsed." It's more accurate to say some elements are stalled or at risk, but core tariff arrangements still exist and discussions continue.
Timeline of Key Events in 2025
March-April 2025
Reciprocal tariffs introduced: The US imposes wide reciprocal tariffs on foreign goods, including UK exports (steel, cars, aluminium) as part of a broader trade policy.
8 May 2025
Economic Prosperity Deal (EPD) announced: The UK and US reveal a landmark economic/trade framework — not a full free trade agreement, but a political and tariff-reduction framework covering cars, beef, ethanol, steel and aluminium quotas and more.
Mid-June 2025
Further progress on tariff reductions: Both sides agree on quotas and reductions for British cars and some other trade elements under the EPD.
18 September 2025
Tech Prosperity Deal signed: The US and UK sign a Technology Prosperity Deal to deepen cooperation on AI, quantum computing, nuclear energy and other advanced technologies, touted as a major strategic partnership.
December 2025
Technology deal suspended/paused: The US formally suspends/pauses implementation of the Tech Prosperity Deal amid disagreements over wider trade issues (digital services tax, food standards, non-tariff barriers).
What's Still Active or Moving Forward
UK-US Economic Prosperity Deal (EPD)
This remains the core trade framework between the two countries.
It's not a legally binding free trade agreement, but a political agreement with tariff reduction commitments and quotas that have already been partially implemented.
Components active or implemented so far include:
Tariff cuts/quotas for UK cars entering the US market.
Other tariff adjustments on beef, ethanol and, in some areas, industrial goods.
UK Parliament Committees
Some Tariff Adjustments Still in Discussion
The broader US removal of tariffs (e.g., on steel and aluminium) remains subject to continued negotiation and implementation detail.
UK Parliament Committees
Regulatory Talks Are Ongoing
The UK and US continue to talk about non-tariff regulatory issues — like food safety standards and digital services taxation — which are key sticking points.
What’s Currently Paused/At Risk
Tech Prosperity Deal (Technology Partnership)
The technology pact signed in September (covering AI, quantum, nuclear collaboration and investment pledges) is currently suspended or paused by the US because trade disagreements have spilled into this cooperation track.
This doesn’t necessarily mean it’s dead — but progress is on hold until wider trade issues are resolved.
What’s Not Happening (Yet)
A Full Free Trade Agreement
A comprehensive UK-US free trade agreement (like an FTA covering all sectors) has not been concluded. The Economic Prosperity Deal is a framework, not a legally binding FTA.