US President Donald Trump has confirmed that Australia will acquire nuclear-powered attack submarines and signed a new agreement on rare earth minerals with Prime Minister Anthony Albanese during talks at the White House on Monday.
The assurance followed months of uncertainty after the Trump administration announced a review of the AUKUS submarine deal, initially signed under former President Joe Biden. Sitting beside Albanese in the White House cabinet room, Trump said, “The submarines we’re building for Australia are progressing very well. We’ve worked long and hard on this, and the process is moving quickly and efficiently.”
The two leaders also finalised a partnership on critical minerals and rare earths—materials crucial to modern technology and defence industries. Albanese emphasised that Australia’s abundance of such minerals could help reduce global reliance on China for supply.
The meeting briefly took an awkward turn when Trump confronted Australia’s ambassador to Washington, former prime minister Kevin Rudd, over his past criticism on social media. “I don’t like you either. I probably never will,” Trump remarked when asked about Rudd’s earlier comments.
Despite widespread scepticism about Trump among Australians, Canberra continues to depend heavily on Washington to counter China’s growing influence in the Indo-Pacific.
Australia expects to receive at least three Virginia-class submarines within the next 15 years under the 2021 AUKUS pact, which also involves the United Kingdom. The deal, valued at around US$235 billion, underpins Australia’s efforts to strengthen its long-range defence capability. However, Trump’s team had paused the programme in June to ensure it aligned with his “America First” agenda, citing concerns about the US Navy’s production capacity.
Australia previously cancelled a multibillion-dollar contract with France for diesel-powered submarines to join AUKUS, prompting diplomatic tensions with Paris. Ahead of the White House meeting, Canberra also positioned itself as a key future supplier of critical minerals such as lithium, cobalt, manganese, and rare earth metals—materials used in electronics, renewable energy, and defence manufacturing.
In April, Albanese announced plans to establish a strategic reserve of critical minerals for key partners like the United States, aimed at reducing China’s control over the global supply chain. This move came as Trump threatened to impose 100 per cent tariffs on Chinese goods in response to Beijing’s latest export restrictions on rare earths.
Despite his tough stance, Trump said he expected a “positive outcome” from his forthcoming meeting with Chinese President Xi Jinping in South Korea, signalling a possible thaw in trade relations.