The Pentagon assesses the AUKUS agreement, and the defense and business industries are worried about submarine delays, cost overruns, and how it fits with allies.

The Pentagon is undertaking a study of the Aukus agreement, a Biden-era arrangement among the US, UK, and Australia to prepare nuclear-powered submarines. The review is expected to determine how the pact fits into the Trump administration's policy of America First that focuses on the preparedness of the nation in case of national defense and transferring some of the military obligations to its allies.

The AUKUS pact, signed in 2021, was a defense and business agreement of considerable significance, with multi-billion-dollar submarine sales and extended industrial cooperation included in the deal. Yet chronic delays and cost overruns in the US submarine construction, now projected to cost over $17 billion more than the budget by 2030, have caused concern in defense and business quarters.

Critics argue that the deal could weaken the US naval fleet at a critical juncture. Any significant alteration or scrapping of the agreement may also derail Australia's defense planning and affect its local defense industry, which has already started reconfiguring to submarine manufacture.

Australia's $325 million down payment indicates the magnitude of the business investment at stake.