Overview
- British officials confirmed the suspension last week and described it as hardball negotiating, with ministerial talks set to resume in January.
- The September framework packaged about £31 billion in private commitments, including £22 billion from Microsoft and £5 billion from Google, plus an AI growth zone in north‑east England.
- The deal’s conditional language states it only becomes operative with “substantive progress” on formalisation, a provision the U.S. has used to pause implementation.
- U.S. frustration centers on non‑tariff issues such as the UK’s 2% digital services tax, which raises roughly £800 million annually, and concerns over UK online‑safety rules.
- American negotiators are also pressing for wider access for U.S. agriculture beyond a 13,000‑tonne beef quota, with other trade areas like steel still unsettled.