Trump administration reviews submarine deal with the UK and Australia

The US has launched a formal review of the multi-billion pound AUKUS submarine deal with the UK and Australia.

The defence pact, which is developing a new fleet of nuclear-powered hunter-killer submarines for the UK and Australia, was agreed under Joe Biden's administration in 2021. The alliance, which also covers collaboration on other advanced technologies, is seen as an attempt to counter the influence of China.

But Elbridge Colby, the Pentagon's top policy advisor, is among vocal sceptics in Donald Trump's administration. "We are reviewing AUKUS as part of ensuring that this initiative of the previous administration is aligned with the President's America First agenda," a US official said.

"Any changes to the administration's approach for AUKUS will be communicated through official channels, when appropriate." AUKUS envisages Australia acquiring up to five US Virginia-class nuclear-powered submarines from 2032 before the UK and Australia design and build a new class of submarine with US assistance. Australia's defence minister Richard Marles said on Thursday he was confident the pact would still go ahead and his government would work closely with the US while Mr Trump's administration conducts a review.

"This is a multi-decade plan. There will be governments that come and go and I think whenever we see a new government, a review of this kind is going to be something which will be undertaken," he told the Australian Broadcasting Corporation.

It comes ahead of Mr Trump's first expected meeting with Australian prime minister Anthony Albanese on the sidelines of the G7 meeting in Canada. Security allies will discuss a request from Washington for Australia to increase defence spending from 2% to 3.5% of gross domestic product (GDP).

Read more from Sky News:Why Trump's 'birthday' parade is controversialIsrael considering military action against Iran AUKUS is at the centre of the UK's planned expansion of its submarine fleet, with up to 12 attack submarines expected to be built for the Royal Navy. The deal is said to be worth more than £175bn.

When it was signed, all three countries - the US, UK and Australia - had different leaders. In May, the US president's new ambassador, Warren Stephens, used his first public speech to back the partnership, highlighting how "vital the US-UK relationship is to our countries and to the world".

A UK government spokesperson said: "AUKUS is a landmark security and defence partnership with two of our closest allies. "It is one of the most strategically important partnerships in decades, supporting peace and security in the Indo-Pacific and Euro-Atlantic, while also delivering jobs and economic growth in communities across all three nations.".