Australian Prime Minister Anthony Albanese said on Friday, 14 August ’26, that the AUKUS defence pact remained full steam ahead after an overnight call with U.S. President Donald Trump. Albanese added that he had urged Trump to fully exempt Australia from all tariffs.
PM Albanese also said that both leaders agreed that AUKUS, a defense pact between Australia, the U.S., and the UK, may deliver nuclear-powered submarines to Australia. It may continue to benefit all three countries.
The Prime Minister also informed reporters in Canberra that they had reviewed the significant progress made under AUKUS. Albanese added that it remains ‘full steam ahead.’
AUKUS is Australia’s largest-ever defense project. It may witness U.S.-commanded Virginia-class submarines based in Australia starting next year. Several Virginia-class submarines Australia is set to acquire starting around 2030 from Australia. Britain as well as Australia is building a new class of AUKUS nuclear-powered submarine.
Canberra has committed AUD 368 (USD 260) billion over 3 decades to AUKUS. This includes billions of dollars in investment in Britain besides U.S. production bases.
Established 5 years ago in 2021, AUKUS is part of efforts to counter China’s growing influence in the Indo-Pacific region. China has called the pact dangerous, warning that it may spur a regional arms race.
Pentagon policy chief Elbridge Colby, who led a review of the AUKUS pact last year, said that the U.S. was pleased with the progress made so far since the review was concluded.
Colby told reporters during a trip to Southeast Asia this week that they witnessed a deep alignment of thinking. They also see a growing energy and increasing focus on the Australian side.
Pentagon’s Colby added that they would keep knocking down the targets on their side, citing that they have every expectation that the Australian side will do likewise. He added that they know what is needed.
The Pentagon’s policy chief, Colby, sparked alarm in Canberra 2 years ago in ’24. This was when he said that submarines were scarce, a critical commodity. Additionally, he stated that the U.S. industry could not produce enough submarines to meet American demand.
Tariff exemption sought
Prime Minister Albanese shared that the phone conversation was very productive, constructive, and lengthy, besides substantial. Furthermore, Trump has agreed to consider a full exemption for Australia from the U.S. flat 12.5% tariffs.
Australia retains a trade deficit with the U.S. Australia imports U.S. machinery, technology, and aircraft, which it has asserted should make it exempt from the tariffs.
The 2 leaders also discussed several other issues. Those included the conflict with Iran, besides recent defense alliances that Australia entered into with Papua New Guinea as well as Fiji.
PM Albanese cited that he expressed his government’s position that it needed to see an end to the conflict in the Middle East. This is while reiterating that Iran should not be permitted to acquire nuclear weapons.
The PM’s comments came as the three countries continue implementing the pact’s submarine pathway, including plans for Australia to acquire US Virginia-class nuclear-powered submarines and eventually build a new AUKUS-class fleet domestically. The program represents Australia’s largest defense investment, estimated at AUD 368 billion over 3 decades. US Under Secretary of War for Policy Elbridge Colby has also reaffirmed Washington’s commitment, describing AUKUS as moving “full steam ahead”, despite continuing challenges surrounding US submarine production capacity.
The leaders’ discussion also covered trade, with Albanese pressing Trump for a full exemption from US tariffs on Australian exports. While the AUKUS commitment remains central to the bilateral relationship, the tariff issue highlights the broader economic pressures facing Canberra and Washington. Albanese said the call was productive and reinforced the strategic value of cooperation between Australia, the United States, and Britain.
(USD 1 = AUD 1.4170)
