Albanese says AUKUS on track after 'productive' call with Trump

Australian Prime Minister Anthony Albanese said Friday that the AUKUS defence pact is "full steam ahead" following an overnight phone call with U.S. President Donald Trump. Albanese described the conversation as "very productive, constructive, lengthy and substantial."

During the call, Albanese urged Trump to fully exempt Australia from U.S. flat tariffs of 12.5%. Trump reportedly agreed to consider the request. Australia has argued for an exemption on the grounds that it runs a trade deficit with the U.S., importing machinery, technology, and aircraft.

The leaders also reviewed progress on AUKUS, the trilateral security pact involving Australia, the U.S., and Britain. The agreement, Australia's largest-ever defence project, will see U.S.-commanded Virginia-class submarines based in Australia from next year, with several more to be sold to Australia from around 2030. Britain and Australia will also collaborate on building a new class of nuclear-powered submarine.

Canberra has committed A$368 billion ($260 billion) to the programme over three decades, including significant investment in U.S. and British production facilities. The pact, formed in 2021, is aimed at countering China's influence in the Indo-Pacific, though Beijing has called it dangerous and warned of a potential regional arms race.

Elbridge Colby, the U.S. Pentagon's policy chief who led a review of AUKUS last year, said Washington is pleased with the progress made since the review concluded. "We see a deep alignment of thinking, and we see an energy and a focus more and more on the Australian side," Colby told reporters this week during a trip to Southeast Asia.

Colby had previously sparked concern in Canberra in 2024 by noting that submarines are a scarce commodity and that U.S. industry could not meet American demand alone.

Albanese and Trump also discussed the conflict with Iran and recent defence agreements Australia signed with Papua New Guinea and Fiji. Albanese reiterated his government's position that the Middle East conflict should end and that Iran must not be allowed to acquire nuclear weapons.