U.S. and U.K. Forge Nuclear Energy Partnership as Trump Eyes Shifts in Future Power Dynamics

U.K. Seeks Energy Stability Amid Rising Costs
Deal Could Reshape Energy Policy Leadership
U.S. Builds Links With Britain’s Hard Right

The United States and the United Kingdom are preparing to announce a multibillion-dollar technology and civilian nuclear energy agreement during President Donald Trump’s upcoming state visit to London. The deal is expected to ease energy cost pressures on British industry following the loss of Russian gas, while expanding opportunities for American technology and nuclear exports. At the same time, Trump is strengthening ties with Nigel Farage, leader of the Reform U.K. party, signaling a “strategic partnership” that extends beyond current governance to Britain’s future political landscape.

A “Package Deal” Covering Defense, Security, and Energy

According to Reuters on the 14th, Washington and London will unveil the agreements during Trump’s visit beginning on the 17th. A spokesperson for Prime Minister Keir Starmer’s office confirmed that Trump and Starmer will meet on the 18th to sign “a world-class technology partnership and a major civilian nuclear energy agreement.” The initiative follows the tariff accord reached in June and is intended to elevate bilateral cooperation across defense, security, and energy.

The technology component will focus on artificial intelligence, semiconductors, telecommunications, and quantum computing, aiming to broaden opportunities for companies and consumers in both countries. The U.K. has already announced $1.69 billion in U.S.-bound investment commitments from firms including PayPal and Bank of America, while U.S. cloud provider CoreWeave has signaled new investments in Britain.

The nuclear energy deal is seen as a direct response to the strains on the U.K. power grid caused by soaring energy costs and the limitations of renewable expansion. With Ofgem recently announcing a 2 percent increase in household electricity prices, the government is looking to nuclear plants to restore stability as a reliable baseload source.

Politically and economically, the agreements carry significant weight. For the U.K., they represent tangible progress on its “Global Britain” agenda post-Brexit, securing both investment and strategic technology collaboration. For the U.S., the partnership strengthens the transatlantic technology axis, bolstering its edge in competition with China. Progress on tariffs would further ease cost structures for energy-intensive industries, making the overall package a blend of technology, nuclear energy, and trade cooperation.

Acknowledging Net Zero Failures

Meanwhile, the U.K. government has, for the first time, formally acknowledged that rising electricity costs are driven not by fossil fuel prices but by the costs of adopting and operating low-carbon technologies such as solar and wind. In a submission to the Public Accounts Committee, the Department for Energy Security and Net Zero (DESNZ) admitted that infrastructure expenses for storage, transmission, and heat pump adoption have been passed on to consumers.

Household electricity bills now average $1,447 annually, exceeding household gas bills of about $1,100. Industrial power costs are as much as four times higher than in the U.S. This reality directly contradicts earlier claims that the net zero strategy would reduce costs. The policy, which legally commits the U.K. to achieving net zero emissions by 2050, has emphasized renewable deployment and efficiency upgrades but is increasingly criticized for fueling higher energy bills.

The Confederation of British Industry and INEOS chairman Jim Ratcliffe have accused the government’s “anti-fossil fuel agenda” of driving industry to the brink of bankruptcy, urging state support to absorb the costs. Oxford professor Dieter Helm added that policymakers “overlooked renewables’ dependence on weather and the need for backup power.” While some argue for long-term benefits, critics in both industry and academia remain unconvinced. Similar setbacks are evident in Germany, where energy costs surged and competitiveness collapsed following aggressive climate policies. This has raised hopes that the U.S.-U.K. technology and nuclear alliance could serve as a corrective force across Europe.

Strengthening Ties With the Hard Right

For Trump, the nuclear partnership also plays into a broader two-track strategy: building official ties with the current government while cultivating relationships with potential future leaders like Nigel Farage. Earlier this month, Farage appeared before the U.S. House Judiciary Committee to denounce “cancel culture” and later attended the launch of GB News’s Washington bureau, where senior Trump administration officials, including Commerce Secretary Howard Lutnick and White House Press Secretary Karoline Leavitt, were present—underscoring deepening Trump-Farage ties.

Farage has staked out a hard-right platform, pledging to deport up to 600,000 undocumented migrants over five years, withdraw from the European Convention on Human Rights, and suspend application of the 1951 U.N. Refugee Convention. While some European outlets denounced his stance as “ugly populism,” conservative media praised it as reflecting middle-class concerns. The resonance of refugee issues in British politics mirrors core themes of the American right.

This explains why the Trump administration is moving swiftly to finalize energy and technology deals with the Labour government while simultaneously strengthening connections with Farage. A hard-right government emphasizing deregulation and energy security could create a favorable environment for U.S. firms in the long run. By securing current agreements and building future networks, Washington is positioning itself to preserve technology and nuclear export opportunities regardless of political change in Britain. The U.S.-U.K. partnership thus doubles as both an immediate alliance and a hedge against shifts in the U.K. power structure.