It’s tempting to dismiss the White House’s decision to review the $386 billion AUKUS pact as a political story. But the implications for Australia’s economy and the nation’s investors could be seismic.
Rabobank global strategist Michael Every says the review could mean “the D for Decision Day I have long warned of may finally loom Down Under after years of have-your-cake-and-eat-it-ism. At the very least, the US seems to be insisting that Canberra pledges to use any US subs against China in a potential war over Taiwan. Do that and maybe Australia can keep AUKUS – yet they will likely pay a high price elsewhere, including on trade.
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