Trump and UK’s PM Starmer Seal Major Tech Pact/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ President Donald Trump and UK Prime Minister Keir Starmer signed a landmark technology agreement during Trump’s state visit to Britain. The leaders also held private talks on tariffs, Ukraine, and the Gaza war amid tensions over steel duties and digital regulations. The visit included royal pageantry and record-breaking U.S. investment pledges in British tech.
Trump’s UK Visit and Tech Deal – Quick Looks
- Trump and Starmer sign $200B trans-Atlantic tech pact.
- Intel, Microsoft, and OpenAI among key U.S. investors.
- $42B pledged for UK’s AI sector, including Microsoft’s $30B supercomputer.
- Private talks covered tariffs, Ukraine, Gaza, and steel trade disputes.
- UK to recognize Palestinian state, adding diplomatic tension.
- UK state visit includes royal honors and historic Chequers retreat.
- Starmer faces scrutiny over Epstein-linked ambassador firing.
- Digital services tax, internet regulation remain unresolved issues.
Deep Look
Trump, Starmer Ink Historic UK-US Tech Deal Amid Tariff, War Talks
AYLESBURY, England — President Donald Trump and UK Prime Minister Keir Starmer on Thursday formalized what both leaders hailed as a “historic” agreement on science and technology, aiming to supercharge investment and cooperation between the United States and the United Kingdom. The signing ceremony, held at the storied Chequers estate, marked a highlight of Trump’s state visit—one filled with royal spectacle and high-stakes diplomacy.
The bilateral agreement, which targets collaboration in artificial intelligence, quantum computing, and clean nuclear energy, coincided with Trump’s meetings with Starmer and top business executives. The leaders also tackled contentious issues in private discussions, including U.S. tariffs on British steel, the wars in Ukraine and Gaza, and Britain’s looming recognition of a Palestinian state.
Record Investment in UK Tech
The visit came with the announcement of a staggering £150 billion ($204 billion) in U.S. investment into the UK, hailed by Starmer as “the biggest investment package of its kind in British history by a country mile.”
Highlights of the deal include:
- £90 billion ($122 billion) from Blackstone over the next decade.
- £31 billion ($42 billion) in AI-sector investments, featuring $30 billion from Microsoft, which will fund Britain’s largest supercomputer project.
- Establishment of a UK branch of Stargate, an OpenAI-led initiative backed by Trump focusing on advanced AI infrastructure.
- Reciprocal investments, including $30 billion from GSK into the U.S.
Trump, seated next to Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick, joked before signing, “Should I sign this, Howard? Scott? If the deal’s no good, I’m blaming you.”
Executives from tech giants like Nvidia, OpenAI, and Microsoft were in attendance, underscoring the weight of the moment.
Royal Honors and Diplomatic Charm
The UK pulled out all the stops to welcome Trump. King Charles III and Queen Camilla hosted the U.S. president and First Lady Melania Trump at Windsor Castle with an elaborate display of British royal tradition: scarlet-uniformed guards, gold-trimmed carriages, a military honor guard, and a lavish banquet.
Following the Windsor reception, Trump and Starmer continued formal proceedings at Chequers—a historic rural retreat often used for diplomatic events. Trump was welcomed with ceremonial bagpipes, a nod to his Scottish heritage, and shown artifacts from Winston Churchill, who first coined the term “special relationship” to describe the UK-US alliance.
Both leaders emphasized the strength of this transatlantic bond. Trump described it as “unbreakable,” while Starmer declared, “It is the very foundation of our security, our freedom, and our prosperity.”
Tensions Beneath the Surface: Tariffs and War
Despite the pomp and smiles, major diplomatic tensions lurk beneath the surface. Trump and Starmer were expected to engage in private talks focused on unresolved trade issues and global conflicts:
- Steel and Aluminum Tariffs: Despite promises in May to resolve 25% U.S. duties on British steel within weeks, the talks have stalled. The British Chambers of Commerce warned that failure to reduce tariffs would deeply disappoint the struggling UK steel industry.
- Gaza and Palestinian Recognition: The UK government has grown increasingly critical of Israel’s military actions in Gaza. Starmer called the Israeli offensive on Gaza City “utterly reckless,” and the UK is expected to formally recognize a Palestinian state within days. Trump, by contrast, has threatened to penalize Canada for a similar move and has not publicly supported the UK’s position.
- Ukraine War: Starmer has pushed for continued Western support for Ukraine, while Trump has voiced frustration over Ukrainian President Volodymyr Zelenskyy’s resistance to peace negotiations. “He’s going to have to make a deal,” Trump said earlier this week. The divergence in tone raises concerns among European allies.
King Charles, in a subtle moment during the state banquet, stressed unity in the face of tyranny. “As tyranny once again threatens Europe, we and our allies stand together in support of Ukraine, to deter aggression and secure peace,” he said.
Unfinished Business: Digital Policy and Ambassadors
Not everything agreed to during the visit has been finalized. UK officials emphasized that the new deal does not include concessions on the digital services tax or internet regulation—two sticking points in earlier negotiations.
Meanwhile, domestic political issues shadowed Starmer during the visit. Days before Trump’s arrival, the UK prime minister dismissed British ambassador to the U.S., Peter Mandelson, due to his past ties to Jeffrey Epstein, the convicted sex offender. The incident raised new scrutiny of Labour’s handling of foreign policy appointments.
Starmer is under growing pressure at home. Despite a landslide election win 14 months ago, Britain’s economy remains stagnant and Labour is falling in the polls. A successful and drama-free state visit was seen as a potential political lifeline.
For Trump, a Win on the World Stage
For Trump, who thrives on spectacle and bold headlines, the trip to Britain has been a diplomatic and political victory. The mix of royal pageantry, billion-dollar business deals, and warm public statements from UK leadership plays well both domestically and abroad.
“This visit has been a net positive for Trump,” said Leslie Vinjamuri, president of the Chicago Council on Global Affairs. “It gives him a platform of prestige and control without many of the political costs.”
With a joint press conference on the horizon, further details of the tech agreement and geopolitical stances may emerge. But for now, the show of unity between Trump and Starmer has served both leaders well—despite clear differences under the surface.
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