IPAN is working on a campaign to see the next government use the exit clause to cancel AUKUS and the Force Posture Agreements- for more information go to www.ipan.org.au
Australia’s AUKUS subs deal could get pricier. But will it even survive the Trump era?
The US is currently reviewing the AUKUS deal — under which Australia will acquire nuclear-powered submarines — to scrutinise its cost-effectiveness.
Australia's AUKUS deal — estimated to cost between $268 billion and $368 billion — is facing pressure as a United States senator says the country is "having trouble getting these ships and subs on time, on budget".
The US and the United Kingdom have both launched reviews into the multi-billion-dollar submarine dea
l amid production concerns and steel tariffs.
Under AUKUS, Australia is set to acquire three nuclear-powered Virginia-class submarines from the US in the early 2030s, before a new fleet of boats is built for delivery from the 2040s.
The deal lasts until 2075, and countries can cancel the contract with one year's notice.
Steel tariffs could create problems
US senator Tim Kaine, the most senior Democrat on a Senate subcommittee on seapower, reportedly told an AUKUS dinner on Wednesday night (local time) submarine construction is facing time and budget setbacks.
He said about a third of the steel and aluminium that went into ships and submarines came from the Canada and the United Kingdom, which like Australia, now face tariffs on their exports to the US
.
"Increase those prices and there’s going to be a problem. So the first concern that I have about the tariff regime is it’s a national sales tax that is really going to blitz us," Kaine said at the dinner in Washington, which was hosted by former Australian defence minister–turned–lobbyist Christopher Pyne, according to Nine Newspapers.