Aukus Pact Faces Challenges Amid US Tariffs

Concerns are mounting regarding Britain’s Aukus security pact with Australia and America as sweeping US tariffs threaten to complicate the production of crucial submarines. A senior Democrat has expressed that the new levies could significantly increase costs and hinder timely production.

Tim Kaine, the Democratic Senator for Virginia and a member of Senate committees on armed services and foreign relations, highlighted that 35 per cent of the steel and aluminium for US vessels originates from trusted partners in Europe, including the UK and Canada. He cautioned that heightened prices could exacerbate existing delays in ship and submarine builds.

The Aukus pact, a landmark trilateral agreement, established under its first pillar that Australia would acquire three nuclear-powered Virginia-class submarines from the United States, alongside constructing five new nuclear-powered attack submarines. A crucial aspect of the agreement is collaboration on advanced technologies, particularly in hypersonic weapons and artificial intelligence.

Concerns regarding the sale of submarines to Australia have intensified in light of the tariffs, generating anxiety in Washington about the implications for deterrence against China. Richard Marles, Australia’s defence minister, noted the necessity for the US to bolster submarine production to fulfil its navy’s requirements, which is vital for Australia’s planned acquisition.

Emerging reports indicate that Australia has a looming deadline to remit USD 2 billion to the United States by 2025 to enhance its submarine shipyards. There is rising apprehension that this funding requirement, combined with Australia’s hesitance to discuss the potential use of these submarines in deterring Chinese aggression, could strain the Aukus partnership itself.

Recent remarks by US naval experts indicate that a lack of willingness from Australia to confront the notion of using the submarines in wartime scenarios might undermine the very deterrent effect they are meant to convey. This sentiment is echoed by Bryan Clark, a former US navy strategist, who asserts that discussions of potential wartime use are essential for effective deterrence.

The UK Parliament’s defence select committee has launched an inquiry to evaluate the status of the partnership and its adaptation to recent geopolitical developments since the initial agreement was made in 2021. This scrutiny follows a review conducted by Sir Stephen Lovegrove, the prime minister’s special representative on Aukus, which aims to assess the project’s trajectory amid current challenges.

Despite fears that the pact’s integrity might be threatened, the UK government remains committed to its goals. Officials have reiterated their dedication to advancing Aukus, ensuring it delivers benefits both economically and in terms of security.