The Pentagon launched a review of a Biden-era pact to develop nuclear-powered submarines with Australia and the UK, as the Trump administration looks to shift the burden to allies and ensure the US’s own supply of warships.

Australia will have “a very high price to pay if AUKUS fails”, opposition defence spokesman Angus Taylor says.

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Investors should not read too much into the AUKUS review. New US administrations routinely revisit major policies and deals as a regular exercise in due diligence.

Little penguins could prove to be a big headache for Australia’s AUKUS program. Work on the key infrastructure needed to support the first Australia-based nuclear-powered submarines will be just one broken wing away from being forced to stop, at least temporarily, under conditions imposed on the project by Environment Minister Murray Watt.