Trump Reaffirms Submarine Deal with Australia, Signs Rare Earths Pact Amid China Tensions

US President Donald Trump (R) speaks during a meeting with Australia's Prime Minister Anthony Albanese (L) in the Cabinet Room at the White House in Washington, DC, on October 20, 2025. (Photo by SAUL LOEB / AFP)

U.S. President Donald Trump on Monday reaffirmed his commitment to providing Australia with nuclear-powered attack submarines and signed a strategic agreement on rare earth minerals with Prime Minister Anthony Albanese during talks at the White House.

The announcement marks a significant step forward in the AUKUS security partnership between Australia, the United Kingdom, and the United States, which had faced uncertainty after the Trump administration placed the submarine deal under review earlier this year.

“The submarines that we’re starting to build for Australia are really moving along,” Trump said during a joint appearance with Albanese. “We’ve worked on this long and hard, and we’re starting that process right now. And it’s really moving along very rapidly, very well.”

Australia had been seeking confirmation of the 2021 agreement to acquire at least three Virginia-class submarines within 15 years. The vessels are central to Canberra’s strategy to enhance long-range strike capabilities in the Pacific amid growing regional tensions.

The AUKUS deal, estimated to cost Australia up to US$235 billion over three decades, replaced a previous agreement with France for diesel-powered submarines, sparking diplomatic fallout between Canberra and Paris.

In addition to defense cooperation, Trump and Albanese signed a critical minerals pact aimed at reducing global dependence on China for rare earth supplies. Australia holds significant reserves of lithium, cobalt, manganese, and rare earth metals essential to technologies ranging from semiconductors and electric vehicles to defense systems.

Albanese has positioned Australia as a reliable supplier of strategic resources, unveiling plans in April for a national reserve to support key partners such as the United States. The initiative is part of broader efforts to counter China’s dominance in the global critical minerals market.

The meeting also included a tense exchange between Trump and Australia’s ambassador to Washington, former Prime Minister Kevin Rudd, who had previously criticized Trump on social media. “I don’t like you either. I don’t. And I probably never will,” Trump said when asked about Rudd’s presence.

Despite polling indicating a generally unfavorable view of Trump among Australians, the country continues to rely on U.S. support to counterbalance China’s expanding military footprint in the Indo-Pacific.

Trump, who recently threatened 100-percent tariffs on China in response to its rare earth export restrictions, struck a more optimistic tone on Monday, saying he now expects a “good trade deal” with Chinese President Xi Jinping during upcoming talks in South Korea.

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