Time to Rethink AUKUS? U.S. Tariffs Could Sink Australia’s Trust
As the United States ramps up protectionist tariffs on key Australian exports — including steel, aluminium, and potentially pharmaceuticals — pressure is mounting on the Albanese government to consider withdrawing from the AUKUS submarine deal as a show of strength and sovereignty.
The AUKUS pact, signed in 2021, binds Australia, the UK, and the U.S. in a decades-long security and technology agreement, with nuclear-powered submarines at its core. But with U.S. economic policy increasingly hostile, some experts argue it’s time to question whether the alliance remains mutually respectful — or merely lopsided.
If Washington wants our loyalty in defence, it can’t punish us in trade. You can’t have submarines on one hand and tariffs on the other.
Critics of the AUKUS deal already point to its ballooning cost, projected delays, and the fact that it heavily benefits U.S. shipbuilders and defence contractors — at Australian taxpayers’ expense. Now, with tariffs threatening Australia’s key industries, the logic of staying tethered to the deal is being openly challenged.
Tariffs on steel and aluminium are a direct hit to the very sectors that will be building submarine support infrastructure here.
Australia has options. Canada recently dropped the US awarded a major contract for Australian-built CEA Technologies radar systems — a reminder that Canberra isn’t just a buyer, but a respected global defence supplier. France, Japan, and South Korea have all previously offered competitive, high-quality submarine alternatives with fewer political strings attached.
With growing evidence that U.S. protectionism is not just a Trump-era blip but a long-term trend, Australia must consider whether continued participation in AUKUS is worth the cost — politically and economically.
Threatening to walk away from the submarine deal may be the leverage Canberra needs to remind Washington: allies aren’t punching bags. AUKUS should be based on respect and reciprocity — not one-way dependency.
