US Reviews AUKUS Pact, Assessing $350 Billion Submarine Deal Impact

The Trump administration has initiated a review of the AUKUS security pact involving the United States, Australia, and the United Kingdom to ensure the agreement aligns with President Trump's 'America First' agenda. This review, led by Undersecretary of Defense Policy Elbridge Colby, assesses key elements such as the transfer of Virginia-class nuclear-powered submarines to Australia and broader cooperation on advanced military technologies. While the U.S. commitment to AUKUS is expected to remain strong, the administration expresses concern over Australia's defence spending, urging Canberra to increase its budget from under 2 percent to about 3.5 percent of GDP to meet alliance expectations. Australian officials have downplayed the review's impact on the pact's future, but tensions linger regarding Australia's reluctance to address Chinese aggression and meet defence spending targets. The partnership aims to counter China's growing military influence in the Indo-Pacific through enhanced collaboration on submarines, hypersonic missiles, quantum computing, and undersea weapons. Despite mixed signals and political sensitivities, U.S. officials including Secretary of Defense Pete Hegseth continue to support the initiative as a model for cooperation with close allies.