US President Donald Trump is committed to supporting the $368 billion US Australian submarine deal and ensuring that ready-made boats are delivered on time, his top defense official said .
US Secretary of Defense Pete Hegses hosted Australian Defence Minister Richard Marles in Washington on Saturday in his first meeting with his foreign counterparts since his appointment on January 29th.
The pair discussed the trilateral aukus alliance, mainly involving the trade in nuclear submarines, which is the largest capital purchase in history.
Hegseth proposed that Trump was the first to show support for the harsh contract without comments from the returning president.
“The president is very conscious and supports Orcas,” Hegses told reporters during a meeting with Mars.
“The (President) recognizes the importance of defense industrial bases.”
Related Stories
US Secretary of Defense Pete Hegses (R) and Australia’s Deputy Prime Minister and Minister of Defense Richard Marles (L) participated in a bilateral meeting held on February 7, 2025 at the Pentagon in Arlington, Virginia. Alex Wong/Getty Images
Ahead of the meeting, Australia announced that it had made the first of its US$500 million ($797 million) payments to boost the capacity of the troubled US submarine industry.
Australia will purchase 3-5 Virginia class submarine vessels to prepare domestic industry in the early 2030s.
However, US shipbuilders are struggling to produce two submarines in the year the US government sources.
Hegseth said his country “certainly hopes” for him as Marles described the US$3 billion injection as a “very unique and important step” in the alliance.
At a later press conference, Marless would not say whether the US had shown that it would require more cash.
“This is an agreement we have,” he said.
We are really pleased with the conversation we have with the Trump administration in relation to this.
“The best route currently supported by the trilateral treaty between the three countries (including the UK) that we signed in Washington last August is the agreement that will last decades.”
The Deputy Australian Prime Minister and Minister of Defense Richard Marless will speak at a bilateral meeting with the US Secretary of Defense held at the Pentagon in Arlington, Virginia on February 7, 2025. Alex Wong/Getty Images
Australia’s military budget is expected to rise to 2.3% of GDP by 2034, in line with current spending ahead of the UK, France and China.
The Orcus contract, which enhances Australia’s maritime and modern warfare capabilities, has been in dispute since the day it was attacked in 2021.
Former Minister Peter Garrett said in comments released on Saturday that Orcas led Australia’s obedient relationship with the US to “a new dangerous, illogical, expensive extreme.”
The Australian Institute of Strategic Policy raised concerns about the complexity of submarine trades and the “unknown” costs of the modern warfare sector.
Meanwhile, the Albanese Labour Government is chasing away the possibility of US tariffs on the country’s exports as it highlights the trade surplus the US has along with Australia.
Overnight, Trump said he plans to announce mutual tariffs in many countries within days and ratchet his bid to restructure world trade.
“We will continue to push Australia’s lawsuits on trade issues,” Marless said.
“We are an island trading nation where trade forms an increasing share of the prosperity of its people.”
Australia will tear a deal between the $90 billion diesel-powered submarine and France to sign on to Orcas, buying some ready-made submarines that cost around US$4 billion each before making their own.
The first Australian-made boat is scheduled to be in operation in the 2040s.
By Reuters and Luke Costin.
