Australia's nuclear submarine deal won't be sunk by tariff-driven cost blowouts, Anthony Albanese says, as Labor is accused of "cannibalising" the defence budget.
More than a third of the steel and aluminium used in US ships and submarines came from partners including the UK and Canada, which have been hit with tariffs, a US lawmaker says.
The tariffs have prompted fears nuclear-powered submarines promised to Australia under the AUKUS agreement with the US and UK could become more expensive.
Controversial billionaire Elon Musk, who is spearheading the cost-cutting US Department of Government Efficiency, has been tasked with reviewing and helping to streamline the vessel procurement process.
Opposition Leader Peter Dutton claimed the Albanese government had "cannibalised" the army, navy and air force to help pay for AUKUS.
"It's at risk under Labor because they're not putting money in, and if the Americans think, or the Brits think, that we're not serious about the program, why would they proceed with it?" he said.
Defence spending is about two per cent and is set to rise to more than 2.3 per cent by the end of the decade with increased expenditure previously committed by Labor.
The prime minister has brushed off concerns over Washington's reliability, noting he spoke with former US president Joe Biden and members of Congress and the Senate during his last state visit.
"I'm confident about AUKUS," he told reporters in Darwin on Friday,
"I'm also confident that people, when they make an assessment, know that this is in Australia's national interest, but it's also in the national interest of the United States."
While the US-Australia military alliance was becoming closer, there was more doubt and uncertainty politically, Australian Strategic Policy Institute senior analyst Euan Graham said.
"What it requires is a hard swallow in Canberra and a willingness to double down," he said.
"I don't just mean on AUKUS, but what the Australian Defence Force needs urgently is to get as much combat capability into service as soon as possible, given the security headwinds that we face globally and in the region."
The "common complaint" of Australia relying on the US for its security was down to inadequate defence spending, Dr Graham said.
The Independent and Peaceful Australia Network has called for an independent inquiry into AUKUS after a lack of parliamentary scrutiny kept "voters in the dark".
Under AUKUS, Australia is set to acquire three Virginia-class submarines from the US in the early 2030s before a new fleet of boats is built for delivery from the 2040s.
But the US is lagging in the production of the boats, and the American president can sink the deal if his navy's capabilities are at risk.
