Australia wants AUKUS submarines for deterrence, stealth, says PM Albanese

By Kirsty Needham

SYDNEY (Reuters) - Australia is buying nuclear-powered submarines as a deterrent, Prime Minister Anthony Albanese said on Friday, adding that the AUKUS treaty that has come under scrutiny amid President Donald Trump's trade policy was also in the United States' interests.

The U.S. sale of three nuclear-powered submarines to Australia under AUKUS is facing new doubts as Trump's tariffs take hold, and amid concern in Washington that providing the subs to Canberra may reduce deterrence to China.

The U.S. Navy in September set a deadline of 2027 for its forces to be prepared for a conflict with China.

Reuters reported, citing U.S. defence experts and documents, consternation that Australia's reluctance to even discuss using the attack submarines against China means transferring them out of the U.S. fleet in 2032 could hurt deterrence efforts.

Campaigning for a May 3 election in the northern garrison town of Darwin, Albanese told reporters he was "confident about AUKUS".

"We're investing in our assets so that we're more secure. Obviously you have assets there as deterrents," he said. "The great benefit of nuclear-powered submarines, as I've spoken about many times, the reason why the Government supports them is because of their stealth capacity."

Asked about comments by a U.S. defence strategist who told Reuters that Australia was unwilling to talk about the offensive capability of the submarines, Albanese said it was not responsible "to talk up war".

Australia faces a 2025 deadline to pay the United States $2 billion under AUKUS to assist with improving U.S. submarine shipyards.

"We support the existing arrangements that we have with the United States," Albanese said when asked whether he would agree to a request for more money from the Trump Administration.

Opposition Liberal Party leader Peter Dutton said Australia needed nuclear submarines because it is an island nation.

"The nuclear submarine allows us to project strength. It makes us a more reliable partner for our Five Eyes partners, and in addition to that Japan and other countries including the Philippines, India," he said on Friday, referring to the intelligence sharing agreement between Australia, the U.S., Canada, New Zealand and Britain.

Albanese's government had cannibalised spending from other parts of the defence budget to pay for AUKUS, he said.

"I do think it is at risk under Labor, because they are not putting money in. If the Americans think or the Brits think we are not serious about the programme, why would they proceed with it?" he told reporters in Western Australia.

Labor has said it is spending A$50 billion more over a decade on defence.

(Reporting by Kirsty Needham in Sydney. Editing by Gerry Doyle)