
When Trump And Albanese Talk Defense
First, in a meeting with Deputy Prime Minister Richard Marles late last month, US Secretary of Defense Pete Hegseth urged Australia to boost defense spending to 3.5% of gross domestic product (GDP).
This elicited a stern response from Albanese that“Australia should decide what we spend on Australia's defense.” Then, this week, news emerged that the Pentagon is conducting a review of the AUKUS deal to ensure it aligns with Trump's“America First” agenda.
Speculation is rife as to the reasons for the review. Some contend it's a classic Trump“shakedown” to force Australia to pay more for its submarines, while others say it's a normal move for any new US administration.
The reality is somewhere in between. Trump may well see an opportunity to“own” the AUKUS deal negotiated by his predecessor, Joe Biden, by seeking to extract a“better deal” from Australia.
But while support for AUKUS across the US system is strong, the review also reflects long-standing and bipartisan concerns in the US over the deal. These include, among other things, Australia's functional and fiscal capacity to take charge of its own nuclear-powered submarines once they are built.
So, why have these issues come up now, just before Albanese's first face-to-face meeting with Trump?
To understand this, it's important to place both issues in a wider context. We need to consider the Trump administration's overall approach to alliances, as well as whether Australia's defense budget matches our strategy.
Trump, alliances and burden-sharingSenior Pentagon figures noted months ago that defense spending was their“main concern” with Australia in an otherwise“excellent” relationship.

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