APCO fellow Jonathan Allen contributed to this piece.
Earlier this month, APCO convened industry and government leaders from the United States and United Kingdom to take part in a discussion titled “The UK-U.S. Year Ahead 2026: A Transatlantic Business Briefing.” Reflecting on recent partnerships and commitments, participants shared their experiences and expectations regarding the two countries’ diplomatic and economic ties since the start of the Trump administration. Conversation highlights included:
Trade remains a north star guiding the UK-U.S. relationship.
London’s flexibility regarding the Trump administration’s trade priorities allowed for the swift signing of the UK-U.S. Economic Prosperity Deal (EPD) and Technology Prosperity Deal (TPD). UK-U.S. trade ties will continue to be anchored by critical sectors like pharmaceuticals, critical minerals and nuclear energy.
Transatlantic success relies on regulatory convergence.
To fully capture the benefits of the EPD and TPD, companies need regulatory frameworks that enable seamless scaling in both markets. These agreements begin that convergence, for example, TPD sets shared goals for regulation in specific sectors like nuclear energy. Policymakers intend to enhance regulatory consistency to reduce trade frictions and stimulate growth as UK-U.S. cooperation deepens.
Congress wants to find its voice on trade
Congress is looking to reassert itself in the trade space and secure the benefits of bilateral trade deals for their constituents in the long term. With the EPD nearing finalization, other bilateral deals advancing and the USMCA renewal process underway, lawmakers have an opportunity to turn these ambitions into action that benefits industries they represent.
Competing with China will require planning and partnership
To maximize complementary strengths, such as the UK’s high-caliber academic environment and the U.S.’s technical service offerings, coordinated efforts to reduce overhead costs and strengthen stable IP environments in both countries are vital.
A “multi-local” approach enhances global maneuverability
As supply-chain and geopolitical risks strain traditional global operating models, firms that build cross-regional flexibility and offer localized products and services will be better positioned to respond to emerging threats
What We’re Watching For:
- Greater regulatory overlap. Regulation was a core topic of discussion, as industry and government participants expressed strong desire to get on the same page. This may ease existing frictions in critical industries with complex permitting, like critical minerals and energy. If these goals are realized, other industries stand to benefit from innovative IP environments and competitive energy costs.
- Eyes on partnerships and frameworks. As the EPD and TPD near finalization, companies should pay close attention to how the final deals may affect their operations. Existing UK-U.S. partnerships such as AUKUS, a trilateral security partnership between Australia, U.K. and United States, stand to become increasingly important for sectoral trade and collaboration.
- Policy leveraging industry, industry leveraging policy. Companies should pay increased attention to deals like the EPD and their impact on operating environments. Governments on both sides of the pond are eager for private-sector input and experience, expanding opportunities for advocacy on business-critical issues.
