UK insists tech deal with US isn't dead as Trump threatens penalties against European tech firms

"Downing Street insists the $40bn Tech Prosperity Deal between the US and UK that is on hold is not permanently stalled. The BBC reported on Tuesday evening that the prime minister's office claimed that the UK remains in active conversations with US counterparts at all levels of government about the wide-ranging deal for the technology industries in both countries to cooperate."

"The agreement, previously billed as historic, was paused after the US accused the UK of failing to lower trade barriers, including a digital services tax on US tech companies and food safety rules that limit the export of some agricultural products. The New York Times first reported British confirmation that negotiations had stalled. The White House and Downing Street did not immediately respond to a request for comment."

"Tuesday's developments come as relations between the US and the EU are likewise chilling. The Trump administration threatened European tech firms on Tuesday with economic penalties if the EU refused to roll back what it called discriminatory actions. The Office of the US Trade Representative accused the EU and some member states of discriminatory and harassing lawsuits, taxes, fines and directives against U.S. services. The Trade Representative's office said in a post on Twitter/X that these companies could face fees and restrictions on foreign services."

Downing Street says the $40bn Tech Prosperity Deal between the US and UK that is on hold is not permanently stalled and that the UK remains in active conversations with US counterparts at all levels. The agreement was paused after the US accused the UK of not lowering trade barriers, citing a digital services tax and food safety rules that restrict some agricultural exports. The New York Times reported confirmation that negotiations had stalled, and neither the White House nor Downing Street immediately responded to comment. Separately, the US warned the EU of economic penalties over alleged discriminatory measures against American services and singled out several European firms.

Read at www.theguardian.com