Trump and Starmer Forge $204 Billion Tech Pact Amid Stalled Steel Tariff Talks

President Donald Trump and UK Prime Minister Keir Starmer held a series of high-level talks at Chequers on Thursday, focusing on trade, technology, and global security matters. The discussions came amid a broader backdrop of Trump's state visit to the UK, which included a grand royal welcome and an emphasis on the “special relationship” between the two nations. During the meeting, the leaders signed a landmark transatlantic technology agreement, with the U.S. committing $204 billion in investment into the UK, spanning sectors such as artificial intelligence, quantum computing, and nuclear energy. The UK government announced that American firms like Microsoft and Blackstone are contributing major investments, including $30 billion from Microsoft for the UK’s largest supercomputer and a $122 billion pledge from Blackstone over the next decade. In return, the UK is expected to see over $30 billion in investments from British companies like GSK in the U.S..

The agreement was hailed as a historic step in fostering economic ties between the two nations, with Starmer emphasizing the mutual respect and cooperation between the leaders. The UK government stated that the deal could create thousands of jobs and significantly boost innovation, particularly in the AI sector, where U.S. firms are investing an additional $42 billion. Notably, the investment includes a U.K. arm of Stargate, an AI infrastructure project backed by Trump and led by OpenAI. Despite these economic commitments, however, negotiations over reducing tariffs on steel and aluminum—currently set at 25%—have stalled, despite an earlier promise in May to resolve the issue within weeks.

In addition to economic discussions, Trump and Starmer addressed global conflicts, including the ongoing war in Ukraine. Trump expressed frustration with Russian President Vladimir Putin, stating that the leader had “let me down” and made clear that ending the war has been more challenging than anticipated. While Trump suggested a potential ceasefire could be near, he admitted during a pre-taped interview that a 30-day truce “would have been tough” to achieve. Starmer, meanwhile, emphasized the importance of continued pressure on Putin, acknowledging the divide between the U.S. and the UK on certain geopolitical issues, such as the recognition of a Palestinian state. The UK has been a vocal supporter of Ukraine, but Trump’s administration has taken a cautious approach, including suspending some military aid and intelligence sharing, before resuming support after a tentative agreement to the ceasefire.

The Chequers meeting also touched on immigration policy, where Trump urged the UK to adopt a stricter stance, warning that unchecked illegal migration “destroys countries from within.” Despite this, the two leaders maintained a warm rapport, with Starmer criticizing Hamas and receiving a show of support from Trump, who slapped him on the back during the news conference. The tone of the talks, overall, reflected a mutual effort to strengthen the transatlantic alliance, with both leaders expressing optimism about the future of their cooperation.

The broader implications of the Trump-Starmer agreement remain to be seen. While the $204 billion in promised U.S. investment is a significant figure, industry analysts have noted that such pledges often differ from actual cash inflows. Nonetheless, the deal underscores the strategic importance of the U.S.-UK relationship in shaping global technology and economic trends. As negotiations on tariffs and other trade issues continue, the success of the partnership will depend on the ability of both nations to move beyond promises and deliver tangible outcomes.