Australia is working to strengthen its military alliance with the United States through AUKUS cooperation and strategic talks. However, growing pressure from Washington to significantly increase defence spending is straining the relationship. During a series of tense high-level meetings this week, Australia underscored its critical role in supplying rare earths and minerals vital for defence and clean technology, but stopped short of committing to the higher levels of military spending that the US expects.
This diplomatic effort followed an unscheduled trip to Washington by Australia’s Defence Minister, who missed parliamentary duties at home in order to meet with key US officials including the Secretary of State and the White House's national security adviser. The surprise visit reflected mounting concern about uncertainty surrounding the AUKUS submarine project, ongoing US tariffs introduced under Donald Trump, and wider tension over the defence contributions expected from US allies.
The United States has urged Indo-Pacific partners, including Australia, to raise defence budgets to 3.5% of GDP. Australia currently allocates around 2%. While the government has indicated a potential rise in the future, it has not committed to the level Washington is pushing for. This gap reportedly led the Pentagon to begin reviewing Australia’s role in the AUKUS pact, raising fresh questions about the long-term strength of the trilateral agreement.
Despite Australia’s resistance, both nations reaffirmed their commitment to the alliance during the meetings. Talks centred on the continued deployment of US forces in Australia and joint efforts to contain China’s growing regional influence. Australia also presented itself as a secure source of critical minerals required for both defence systems and renewable technologies in a wider effort to ease trade frictions and reduce US tariffs.
The results of these talks may play a role in whether Australia’s leadership secures a long-sought meeting with President Trump, which would signal progress in the bilateral relationship. However, the disagreements over defence spending and trade policy suggest that tensions are likely to continue.
