AUKUS nuclear submarine sale under scrutiny as Trump tariffs rattle Australia

10/4/2025 16:30

The sale of nuclear-powered submarines to Australia under the AUKUS treaty faces new doubts as U.S. President Donald Trump's tariffs take hold, and amid concern in Washington that providing the subs to Canberra may reduce deterrence to China.



Whether the United States can boost submarine production to meet U.S. Navy targets is key to whether Australia can buy three Virginia-class submarines starting in 2032, Defence Minister Richard Marles said last month, after talks with his U.S. counterpart, Pete Hegseth.



Australia faces a previously unreported 2025 deadline to pay the United States $2 billion to assist with improving its submarine shipyards. The Trump administration has asked for more funding, Marles said in March.



Consternation is growing in Washington that Australia's reluctance to even discuss using the attack submarines against China means that transferring them out of the U.S. fleet to Australia would hurt deterrence efforts in the Indo Pacific, according to experts and documents.