A U.S. official revealed that the Trump administration is reviewing a defense agreement worth hundreds of millions of dollars signed by former president Joe Biden with Australia and Britain, which allowed Australia to purchase conventionally-armed nuclear submarines.

The formal Pentagon review will likely alarm Australia. It sees submarines as crucial to its defense, as tensions rise over China's massive military buildup.

This could also cause a snag in Britain's defence planning. AUKUS will be at the heart of Britain's planned expansion of their submarine fleet.

The Financial Times reported the first report of this review. "We are reviewing AUKUS to ensure that this initiative from the previous administration is in line with the President's America First Agenda," said the official.

When appropriate, any changes to the administration’s approach for AUKUS are communicated via official channels.

AUKUS was formed in 2021 as a response to shared concerns about China's increasing power. It is designed to enable Australia to acquire advanced weapons, such as hypersonic and nuclear-powered attack subs.

Elbridge Colby is the Pentagon's chief policy advisor and one of Trump's most senior officials who has been vocally critical of the AUKUS agreement.

Colby warned that U.S. submarines are a critical, scarce commodity and that the U.S. industrial sector cannot produce enough to meet American demands.

The First Island Chain is a region that stretches from Japan to Taiwan to the Philippines to Borneo and encloses China's coast seas.

"CROWN JEWEL"

Colby asked, "My concern is that we are giving away our crown jewel asset at a time when we need it most."

The Australian and UK embassies did not respond immediately to a comment request.

A request for comment from the U.S. National Security Council was not also immediately responded to.

AUKUS, Australia's largest-ever defence project, will see Canberra commit A$368 Billion ($240 Billion) over the next three decades. This includes billions in investment into the U.S. manufacturing base.

The U.S. review of the British plan comes just hours after the British government revealed plans to

The UK will invest billions to upgrade its submarine industry base

The increase in submarine production announced by the Strategic Defence Review of Britain will be possible at Rolls-Royce Submarines, BAE Systems and other companies.

The British government announced this month that it will build a new nuclear power plant.

Up to 12 Next-Generation Attack Submarines

The model that will be developed jointly by the UK, U.S.A. and Australia as part of AUKUS.

Six countries only operate nuclear submarines - the U.S.A., UK, Russia China France and India

AUKUS will add Australia to this club in 2032, when the U.S. sells Virginia-class submersibles. The U.S., Britain and Australia would begin forward rotations of submarines from an Australian Naval Base in Western Australia in 2027.

The U.S. would help Britain and Australia design and build new submarines. First deliveries to the UK and Australia will be in the late 30s and early 40s.

Colby referred to Australia's long-standing alliance with Washington that included sending troops to Vietnam.

Colby stated last year that "I believe we can make a good bet that Australia will be with us in case of conflict".

Defense Secretary Pete Hegseth told Congress on Tuesday that "we are having honest discussions with our allies."

Hegseth stated that Australia should integrate their capabilities into the way they use their submarines and also with how they work with us.

Malcolm Turnbull, the former Australian Prime Minister, said last week that it is "more than likely" that Australia won't end up with submarines, but will instead provide a large base and maintenance facilities in Western Australia to the American Navy. Reporting by Phil Stewart, Idrees Al and David Brunnstrom. Additional reporting by Mrinmay Dey and David Brunnstrom from Washington. Editing by Don Durfee & David Gregorio.

(source: Reuters)