Technology is once again caught in the trade policy crosshairs of the Trump administration.

Reports says the United States is suspending the implementation of the “Tech Prosperity Deal,” an estimated $41 billion agreement that Trump made with the United Kingdom earlier this year with the goal of promoting joint artificial intelligence and quantum computing efforts. The agreement includes several investment commitments from American technology giants such as Microsoft, Google and Nvidia.

Officials not named confirmed in the Financial Times that the US suspended the deal last week. What angered Washington, according to a The New York Times reportare Britain’s strict food safety standards, online safety rules and digital services tax.

Back when the US and UK first started trade talks earlier this year, British officials did two things very clear: they will not move to food standards or the Online Safety Act.

The United Kingdom generally has stricter food safety regulations than the US, which American officials have long considered discrimination as they translate into fewer American imports. British regulations are particularly strict on treating cattle with growth hormones such as estradiol 17ß and testosterone or washing raw chicken in chlorinated water, both of which are common practices in the state. Although a trade deal agreed in May has opened the way for more American beef exports, the UK has not actions of hormone-related safety requirements.

The second point of contention, Online Safety Actpressures online platforms such as search engines and social media websites to protect users, mostly children, from harmful content such as pornography or those promoting self-harm, suicide or eating disorders, to name a few. The law also holds companies accountable for any sexual abuse or child exploitation that occurs on their platform. Major technology companies that fail to comply with the law face fines of up to 10% of their global revenue, and even criminal action against senior managers in some cases. The law is considered by some, including Republican Rep. Jim Jordanas censorship.

Also believed to be weighing the deal is the United Kingdom Digital Services Taxwhich taxes 2% of the revenues of major social media, search engine or online marketplace providers operating in the United Kingdom.

America’s other trading partners have similarly strict digital regulations, including the European Union, which administration officials also targeted on Tuesday. The European Union announced landmark technology regulations aimed at ensuring online safety and competitive practices in the technology industry. Many American major technology companies have been hit with fines for these actions, and Trump considers the fines to be “extortion abroad,” making fighting them a central point of his trade strategy in the bloc.

On Tuesday, the US trade representative threatened regulatory action against European companies in response, singling out Spotify, Siemens, Accenture, French AI company Mistral, and others.

“Responsive measures are necessary, US law allows for the review of payments or bans on foreign services, among other actions,” the office of the US trade representative shared in a post on X. “The United States will take a similar approach to other countries pursuing an EU-style strategy in this area.”