Patriot Brief
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What Happened: President Trump suspended the UK’s £31 billion Tech Prosperity Deal over Britain’s Online Safety Act and censorship rules.
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Why It Matters: The regulations threaten U.S. AI companies with massive fines and could weaken America in the global tech race.
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Bottom Line: Trump is making clear that free speech and U.S. innovation are not negotiable in trade deals.
President Donald Trump just sent a clear message to America’s so-called allies: censor U.S. tech and there will be consequences.
The White House has officially suspended the UK’s so-called “Tech Prosperity Deal,” a £31 billion agreement, over Britain’s aggressive censorship regime and expanding regulations under its Online Safety Act. The pause comes amid growing concern that the law would kneecap American artificial intelligence companies while handing a strategic advantage to China.
BREAKING: President Trump has suspended the £31 billion ‘tech prosperity’ deal with Britain. GB News’ Political Editor Christopher Hope reacts, calling it ‘a disaster.’ pic.twitter.com/j0ZTCfvENb
— GB News (@GBNEWS) December 16, 2025
According to The Telegraph, the Trump administration froze the deal after concluding that the UK has no intention of backing off its heavy-handed approach to policing online speech. The law allows British authorities to slap massive fines on tech companies accused of facilitating so-called “hate speech,” a definition critics say is vague, political, and ripe for abuse.
The problem only grows with AI. Companies like OpenAI and xAI could face crippling penalties simply for how their chatbots generate responses, limiting innovation and slowing U.S. dominance in the global AI race.
“Americans went into this deal thinking Britain were going to back off regulating American tech firms,” a source familiar with the decision said. “But realized it was going to restrict the speech of American chatbots.”
Trump’s move follows the release of his new National Security Strategy and a series of interviews signaling a tougher posture toward European governments that undermine free expression while expecting continued access to U.S. markets.
UK officials recently doubled down. On Dec. 3, Technology Secretary Liz Kendall announced plans to impose even more restrictions on chatbots, closing what regulators claim are “loopholes.”
Trump’s response was simple: no deal until the censorship stops.
For an administration prioritizing free markets, innovation, and American competitiveness, the message is unmistakable. If foreign governments want access to U.S. tech and trade, they cannot simultaneously throttle speech, punish innovation, and tilt the playing field in China’s favor.