The US has suspended a planned 'technology prosperity deal' with the UK, amid a trade dispute.

The tech partnership – which was meant to boost digital infrastructure, AI, quantum computing, and nuclear power – was announced this September.

The Financial Times reports that US officials have grown frustrated over the UK's unwillingness to remove trade barriers, including food regulations.

Under the Food Standards Agency (FSA), the UK generally has stronger food regulations than the US. For example, the country has banned azodicarbonamide (ADA), a food additive linked to respiratory issues and a low cancer risk. It is commonly used in baked goods, rice, chewing gum, flour, and grains in the US.

Other substances, like Red 40 – which is linked to hyperactivity, allergies, migraines, and potential DNA damage – are not banned in the UK, but are heavily regulated and require products to be labeled with warnings.

Trade conversations between the US and UK have been ongoing since May, when Prime Minister Keir Starmer struck a deal to minimize the worst of President Donald Trump's tariffs. As part of that deal, the UK agreed to allow the tariff-free import of 13,000 tonnes of US beef a year.

What the US's exact trade demands are to resume the tech deal are not clear.

Google’s DeepMind AI division, which was founded in the UK before being acquired by the search giant, was set to work with both governments to advise on how scientists can harness the latest AI tools in their work.

“This Tech Prosperity Deal marks a generational step change in our relationship with the US, shaping the futures of millions of people on both sides of the Atlantic, and delivering growth, security, and opportunity up and down the country," Starmer said in September.