Australia’s Defence Minister Richard Marles expressed strong confidence on Thursday that the AUKUS submarine agreement with the U.S. and UK will proceed, despite a formal review by the Trump administration. Valued at A$368 billion ($239 billion), AUKUS is Australia’s largest-ever defense project, aiming to build and acquire nuclear-powered submarines to enhance deterrence in the Indo-Pacific.
A U.S. Pentagon official confirmed the review is to ensure alignment with President Trump’s “America First” agenda. Marles downplayed concerns, calling the review expected with new administrations and reaffirmed Australia’s long-term commitment to the trilateral pact.
Australian Prime Minister Anthony Albanese is set to meet President Trump during the G7 summit in Canada, where discussions will include a U.S. request for Australia to raise its defense spending from 2% to 3.5% of GDP. Albanese has pledged to increase spending to 2.3%, but remains firm on not committing to the higher target.
Under AUKUS, Australia is scheduled to purchase up to three Virginia-class submarines from the U.S. beginning in 2032, with a $2 billion payment to support U.S. shipyard expansion starting in 2025. The first $500 million installment was paid in February. However, U.S. submarine production delays have raised questions, especially from key review figure Elbridge Colby, about the feasibility of fulfilling both domestic and allied commitments.
Experts say the review primarily assesses U.S. capability to deliver submarines while balancing its own strategic needs, particularly amid tensions with China. Meanwhile, the UK and Australia plan to co-develop the AUKUS-class submarine, expected to launch around 2040.
Despite criticism over Australia’s defense spending, Marles emphasized that AUKUS strengthens collective security and creates thousands of jobs, reinforcing long-term defense ties among the allies.