Australia’s AUKUS nuclear-powered submarine deal with the United States and United Kingdom is facing a review by the Pentagon, as the prime minister prepares for his first face-to-face meeting with the US president.
Since returning to the White House, Donald Trump has provided some reassurance about the future of the $368 billion submarine agreement struck in the Biden era.
But in a move first reported by the Financial Times and confirmed by the Pentagon, a review will be conducted to ensure the program meets the “America First” criteria.
The review will be helmed by top US defence official and AUKUS sceptic Elbridge Colby, the under secretary for defence.
Announced in 2021, the AUKUS agreement was designed to eventually support a shipbuilding industry in Australia to construct the highly complex nuclear-powered submarines using a UK design and technology shared between the three countries.
But in the 15 years ahead of that, the US was set to provide at least three Virginia-class submarines, though its own domestic manufacturing industry is under pressure.
Donald Trump’s administration will conduct a review into whether AUKUS meets the US government’s “America’s First” criteria. Source: Getty / Anna Moneymaker
Australia’s agreement on AUKUS included significant investment in the American production line, and has been considered advantageous to the US.
‘Natural’ that Trump administration would want to conduct review
Deputy Prime Minister Richard Marles said Australia remains committed to the AUKUS agreement and would work closely with the US on the review.
A spokesperson for Marles said that the US had advised Australia and the UK of the review.
“It is natural that the [Trump] administration would want to examine this major undertaking, including progress and delivery, just as the UK government recently concluded an AUKUS review and reaffirmed its support,” the spokesperson said in a statement.
“All three countries are committed to ensuring AUKUS meets national and trilateral objective … Our engagement with the Trump administration and across the full political spectrum in the United States has shown clear and consistent support for AUKUS.”
US Democrat congressman Joe Courtney, one of AUKUS’ supporters in Washington, warned of serious consequences if the Trump administration junks the defence agreement.
“To abandon AUKUS — which is already well under way — would cause lasting harm to our nation’s standing with close allies and certainly be met with great rejoicing in Beijing,” Courtney said.
The prime minister is expected to lock in face-to-face talks with Trump on the sidelines of the G7 in Canada, which starts on Sunday.
