Trump Renegotiates AUKUS Submarine Contract And Now America Is Paying Australia $350bn Instead

ERROL PARKER | Editor-at-large | Contact

President Donald Trump on Wednesday announced a sweeping renegotiation of the AUKUS submarine pact, under which the United States will now pay Australia $350bn and hand over its fleet of nuclear-powered submarines, reversing an earlier deal in which Australia was to pay America.

"This is a tremendous win for the American people, maybe the biggest win ever," Trump told reporters outside the White House.

"Under the old deal, the Biden deal, they were paying us. Weak. Pathetic. So we flipped it. Now we pay them. Much stronger position."

The agreement covers up to eleven Virginia-class submarines, none of which have been built, amid longstanding concerns that U.S. shipyards cannot produce the vessels fast enough to meet existing commitments. Administration officials described the renegotiated terms as "full steam ahead."

The deal drew immediate criticism from both parties.

"We are paying a foreign nation a third of a trillion dollars to take our own warships," said one Republican senator who requested anonymity.

"I have read it four times. It gets worse each time."

Pentagon officials were reportedly informed of the agreement after it was finalised. One senior Navy officer, asked for comment, declined to provide one.

In Canberra, Prime Minister Anthony Albanese signed the document within hours, before Washington could reconsider. Defence Minister Richard Marles called the terms "very satisfactory" and took no questions.

Asked whether transferring the entire submarine force to a foreign government posed a security risk, Trump dismissed the concern.

"They're a great ally. If we need them back, we'll offer a good price. They will not be able to afford to say no. We're very good at buying things."

Sources indicate the administration is exploring similar arrangements with other allies, including a proposal involving aircraft carriers and Japan. The deal is expected to face legal challenges.

More to come.