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4w ago

AUKUS Submarine Deal Faces Rising Costs and Strategic Doubts

US tariffs, production delays, and political uncertainty in Australia are jeopardizing the trilateral defense pact's timeline and goals.

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Virginia-class fast attack submarine USS Minnesota (SSN-783) is seen off the coast of Western Australia, Australia March 16, 2025./File Photo
Virginia-class fast attack submarine USS Minnesota (SSN-783) is seen off the coast of Western Australia, Australia March 16, 2025. COLIN MURTY/Pool via REUTERS /File Photo
Australia's Prime Minister Anthony Albanese speaks to the media during a press conference at the Australian Parliament House in Canberra, Australia, August 16, 2024. REUTERS/Tracey Nearmy/File Photo

Overview

  • US tariffs on steel and aluminum, imposed by President Trump, are increasing the cost of building submarines for Australia's AUKUS acquisition plan.
  • Concerns grow over the US's ability to scale up Virginia-class submarine production, critical to delivering three submarines to Australia by 2032.
  • Australia faces a looming $2 billion payment deadline in 2025 to help improve US submarine shipyards, with potential requests for additional funding raising financial pressures.
  • Experts warn that transferring submarines from the US fleet to Australia could weaken American deterrence against China in the Indo-Pacific region.
  • Political uncertainty in Australia, including public scrutiny over defense spending and upcoming elections, further clouds the pact's stability and execution.