President Donald Trump on Monday insisted the U.S. is going “full steam ahead” on a major nuclear-powered submarine pact, ending months of uncertainty over whether his administration would keep the alliance with Australia and the U.K.
The Pentagon announced this summer that it was reviewing the deal, known as AUKUS, fueling angst in Canberra and London that the Trump administration might walk away from a rare agreement to expand production of nuclear submarines and partner on tech to ward off China. But Trump gave his support Monday at a White House meeting with Australian Prime Minister Anthony Albanese, where leaders sought to reset the tone of the relationship after weeks of speculation about the pact’s future.
“We’re just going now full steam ahead,” Trump said when asked about the deal. “They’re building magnificent holding pads for the submarines. It’s going to be expensive. You wouldn’t believe the level of complexity and how expensive it is.”
Canberra has committed billions to develop submarine and naval shipbuilding facilities in western Australia, designed to host and maintain U.S. and U.K. nuclear-powered submarines while revving up construction of new ones. The new infrastructure would turn Australia into a hub for allies and their submarines in the region, all aimed as a bulwark against China.
Navy Secretary John Phelan, at the meeting, said the plan is to “take the original AUKUS framework and improve it for all three parties, and make it better, clarify some of what was in the prior agreement.”
Trump, who is expected to meet with Chinese President Xi Jinping in the coming weeks, said he views AUKUS as a deterrent against Beijing but not a step toward a confrontation. And he dismissed the idea of a conflict over Taiwan. “We’ll be just fine with China,” he said. “First of all, the United States is the strongest military power in the world by far.”
Trump and Albanese also signed a deal for critical minerals and rare-earth elements, formalizing joint investments between the two countries to strengthen non-Chinese supply chains for materials crucial for defense and high-tech manufacturing. Officials negotiated it over the last few months, Trump said.
Albanese described it as an AUD $8.5 billion pipeline, with joint contributions over the next six months.
“Australia has had a view for some time — it’s similar to putting America first,” he said. “Our plan is called ‘A Future Made in Australia,’ which is about not just digging things up and exporting them, but making sure we have supply chains where our friends can benefit.”
The mineral push comes amid increasing trade tensions between the U.S. and Beijing, which has tightened export controls on rare-earth elements and permanent magnets. Both are vital for defense and high-tech products.
Trump reiterated his threat to levy hefty tariffs on China if it does not relent on the new trade restrictions. “They threatened us with rare earths, and I threatened them with tariffs,” he said. “We could stop the airplane parts, too. We build their airplanes.”
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