Overview

• The Trump administration has launched a formal review of the AUKUS submarine pact, a process Deputy Prime Minister Richard Marles describes as a routine alliance evaluation.
• Prime Minister Anthony Albanese has rebuffed US calls to raise Australia’s defence spending from about 2 percent to 3.5 percent of GDP, emphasising sovereign decision-making.
• Australia has already disbursed nearly $800 million to boost US Virginia-class submarine production as the initial payment toward its long-term $368 billion commitment.
• Senior Pentagon figures, including undersecretary Elbridge Colby and Secretary Pete Hegseth, have indicated the review could be used to renegotiate deal terms or secure additional funding for construction and joint facilities.
• Some defence analysts advocate for more cost-effective regional deterrents—such as expanded anti-access systems and unmanned drones—instead of investing exclusively in nuclear-powered submarines.