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Australia’s US$525 million Aukus payment proceeds amid Trump review of submarine pact
Australia sees the pact as crucial for defence against China’s rise, while the Trump administration wants it to align with its ‘America First’ policy
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Australia has paid the United States A$800 million (US$525 million) in the second instalment under the Aukus nuclear submarine deal, despite an ongoing formal review of the agreement by US President Donald Trump’s administration. Prime Minister Anthony Albanese confirmed the latest instalment on Wednesday, following an initial US$500 million paid in February.
In 2023, the United States, Australia and Britain unveiled details of a plan to provide Australia with nuclear-powered attack submarines from the early 2030s to counter China’s ambitions in the Indo-Pacific. Australia committed to spend A$368 billion over three decades in its biggest-ever defence deal. Canberra is due to pay the US$2 billion by year-end to support the expansion of American submarine shipyards, Reuters reported in April.
“There’s a schedule of payments to be made. We have an agreement with the United States as well as with the United Kingdom, it is about increasing their capacity, their industrial capacity,” Albanese told national broadcaster ABC.
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“As part of that as well, we have Australians on the ground, learning those skills.” Trump launched a formal review of Aukus in June to examine whether the pact met his “American First” criteria.
It will be led by Elbridge Colby, who in the past has expressed scepticism about Aukus. Australia, which sees the submarines as critical to its own defence as tensions grow over China’s military build-up, has maintained it is confident the pact will proceed.
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