Trump and Starmer Reach $204 Billion Technology Agreement as Steel Tariff Negotiations Remain Deadlocked

On Thursday, President Donald Trump and UK Prime Minister Keir Starmer met at Chequers for extensive discussions centered on trade, technological advancements, and international security. These talks occurred as part of Trump’s official visit to the UK, which featured a lavish welcome from the royal family and a renewed focus on the “special relationship” binding the two countries. During their meeting, both leaders finalized a significant transatlantic technology pact, under which the United States will invest $204 billion in the UK, targeting industries like artificial intelligence, quantum technology, and nuclear power. The UK government revealed that American corporations such as

and are making substantial contributions, including a $30 billion investment from Microsoft to establish the UK’s most powerful supercomputer and Blackstone’s commitment of $122 billion over the coming decade. In exchange, the UK anticipates over $30 billion in investments from British firms, including in the United States.

This agreement has been celebrated as a transformative milestone for economic partnership between the US and UK, with Starmer highlighting the spirit of collaboration and respect between the two governments. According to UK officials, the deal could generate thousands of new jobs and drive significant growth in innovation, especially as American companies channel an extra $42 billion into AI development. A notable aspect of this investment is the creation of a UK division for Stargate, an AI infrastructure initiative supported by Trump and managed by OpenAI. Despite these bold economic moves, progress on reducing the 25% tariffs on steel and aluminum has stalled, falling short of a previous commitment to resolve the dispute within a few weeks.

Beyond economic matters, Trump and Starmer also confronted pressing global issues, including the conflict in Ukraine. Trump voiced disappointment in Russian President Vladimir Putin, remarking that he felt “let down” by him, and acknowledged that ending the war has proven more difficult than initially hoped. While Trump indicated that a ceasefire may be approaching, he conceded in a recorded interview that achieving a 30-day pause in fighting “would have been hard.” Starmer, for his part, stressed the need to keep diplomatic and economic pressure on Putin, pointing out ongoing differences between US and UK policies, such as their stances on recognizing a Palestinian state. The UK remains a steadfast ally of Ukraine, whereas Trump’s administration has at times paused military and intelligence support, only resuming assistance after tentative progress toward a ceasefire.

Immigration policy was another topic of debate, with Trump urging the UK to adopt tougher measures, warning that lax controls on illegal immigration can “destroy nations from within.” Despite differing viewpoints, the meeting was marked by cordiality, with Starmer condemning Hamas and receiving public encouragement from Trump, who gave him a congratulatory pat during their press event. Overall, the dialogue was characterized by a shared determination to deepen the transatlantic alliance, with both leaders voicing hope for ongoing fruitful cooperation.

The long-term significance of the Trump-Starmer agreement remains uncertain. Although the $204 billion investment pledge from the US is substantial, industry experts caution that such announcements often do not translate directly into real capital flows. Even so, the agreement highlights the crucial role of US-UK collaboration in influencing global developments in technology and the economy. As negotiations continue over tariffs and other commercial matters, the effectiveness of this partnership will hinge on both sides following through with concrete results rather than just commitments.