The adjustment to the landmark defense agreement was announced on the sidelines of the Shangri-La Dialogue security forum in Singapore by Australian Deputy Prime Minister and Defence Minister Richard Marles, U.S. Defense Secretary Pete Hegseth and British Defence Secretary John Healey.

In a joint statement, the three ministers said the revised arrangement would simplify Australia’s acquisition process while reducing logistical and maintenance complexities.

“The deputy prime minister and secretaries welcomed the proposed approach to streamline Australia’s acquisition of Virginia-class submarines, simplifying supply chain management, operational and maintenance requirements, and maximizing cost efficiencies,” the statement said.

Under the revised plan, Australia will receive three operational Virginia-class submarines from the U.S. Navy rather than the previously anticipated mix of two used vessels and one newly built submarine.

The change reflects ongoing production challenges within the United States naval shipbuilding sector. The U.S. Navy currently operates 24 Virginia-class submarines, but American shipyards have struggled to achieve construction targets of two new submarines annually.

The AUKUS partnership, unveiled in 2021 by Australia, the United States and the United Kingdom, is designed to strengthen security cooperation in the Indo-Pacific region and provide Australia with nuclear-powered submarine capabilities for the first time.

The submarine program remains the centerpiece of Australia’s long-term defense strategy amid growing strategic competition in the Indo-Pacific. Government projections estimate the initiative could cost up to A$368 billion (US$235 billion) over three decades.

The revised arrangement may also help address concerns raised by some U.S. lawmakers and defense analysts who have questioned whether Washington should transfer advanced submarines to allies while facing pressure to expand its own naval fleet.

Officials from the three countries did not indicate any changes to the broader objectives of the AUKUS partnership, which also includes cooperation on advanced military technologies, cybersecurity, artificial intelligence and undersea capabilities.

The announcement came as defense leaders from around 45 countries gathered in Singapore for the annual Shangri-La Dialogue, where maritime security, military modernization and regional strategic competition dominated discussions.

Australia has argued that acquiring nuclear-powered submarines is essential to enhancing its long-range deterrence and operational capabilities in an increasingly contested Indo-Pacific security environment.

Speaking at the Shangri-La Dialogue in Singapore, Hegseth said the United States possesses sufficient military capabilities and munitions stockpiles to restart operations if required, while emphasizing that the administration remains committed to pursuing a diplomatic settlement.

“Our ability to recommence if necessary ,we are more than capable,” Hegseth said, adding that US military inventories are adequately positioned both in the region and globally.The remarks come as negotiators from Washington and Tehran continue efforts to overcome key differences that have stalled a broader agreement aimed at extending an early-April ceasefire and establishing a permanent framework to end hostilities.

Hegseth said President Donald Trump remains committed to securing what he described as a strong agreement that would prevent Iran from obtaining a nuclear weapon. Trump said on Friday he would convene advisers in a secure White House facility to make a final decision on a proposal that would extend the current truce by an additional 60 days.

The conflict, launched by the United States and Israel on February 28, has resulted in thousands of deaths, primarily in Iran and Lebanon, while disrupting global energy markets through the effective closure of the Strait of Hormuz, one of the world’s most important oil transit routes.

Despite the Middle East conflict, Hegseth rejected suggestions that Washington’s strategic focus had shifted away from the Indo-Pacific. He said the United States is expanding its defense-industrial capacity to increase weapons production and maintain readiness across multiple theaters simultaneously.

At the same forum, Hegseth urged Asian allies to increase defense spending in response to China’s growing military capabilities, describing Beijing’s military expansion as a source of concern for regional security.

He argued that a stronger network of capable regional partners is necessary to preserve the balance of power in the Indo-Pacific and deter potential aggression. Hegseth warned that dominance by any single power would undermine regional stability and prosperity.

Echoing a longstanding position of the Trump administration, Hegseth said allies should assume greater responsibility for their own defense and reduce dependence on US military support.“The era of the United States subsidizing the defense of wealthy nations is over,” he said, adding that strong alliances require all partners to contribute meaningfully to collective security.

Hegseth cited defense contributions from countries including South Korea, Philippines, Australia, Singapore, Malaysia and Thailand, while highlighting efforts by Japan to strengthen its military capabilities and deepen cooperation with Washington.

Official trade data showed Taiwan exported 181,159 drones between January and April, almost 20 times the volume recorded during the same period a year earlier and exceeding total exports for all of 2025. The majority of shipments were sent to the Czech Republic and Poland, destinations industry observers believe serve as transit points for equipment ultimately supporting Ukraine’s defense effort.

The sharp rise highlights how the Russia-Ukraine war has transformed the global drone market, with low-cost unmanned aerial vehicles becoming essential tools for reconnaissance, surveillance and precision strikes. The conflict has accelerated military spending worldwide and increased demand for alternative drone suppliers outside China.

Taiwan is positioning itself as an Asian production center for so-called “non-red” drones and components, a term used by industry participants to describe products free from Chinese materials and supply chains. The strategy aligns with broader efforts by Western governments and defense industries to reduce dependence on Chinese technology.

While Taiwanese manufacturers benefit from the island’s advanced electronics ecosystem, including strengths in semiconductors and artificial intelligence, they face significant cost disadvantages. Industry executives say non-Chinese drones can cost up to three times more than comparable products from Chinese manufacturers such as DJI, which dominates the global commercial drone market through large-scale production.

Analysts say overseas sales have become increasingly important for Taiwan’s emerging drone sector because domestic demand remains limited. Samara Duerr, a policy analyst at the Taiwan government-backed Research Institute for Democracy, Society and Emerging Technology, said international markets provide manufacturers with the scale and operational experience needed to expand production capacity.

The export boom also reflects opportunities created by Beijing’s tightening restrictions on drone exports in recent years. Those controls have encouraged foreign buyers to seek alternative suppliers, benefiting Taiwanese firms attempting to establish themselves in global supply chains.

Taiwan’s government has set ambitious targets for the sector, aiming to increase monthly production capacity to 100,000 drones by 2030, significantly above earlier goals. Officials view drone manufacturing as both an economic opportunity and a strategic necessity as Taiwan seeks to strengthen its defense capabilities in the face of military pressure from China.

China claims Taiwan as its territory and has intensified military activity around the island in recent years. Taipei sees the development of a domestic drone industry as part of broader efforts to enhance self-reliance and deterrence.

Industry leaders argue, however, that progress is being constrained by delays in government procurement programs. Plans to acquire more than 200,000 domestically produced drones under a proposed defense package worth nearly $40 billion have been stalled in Taiwan’s opposition-controlled parliament.

Max Lo, chairman of drone manufacturer AeroSoarX, said overseas contracts were essential for maintaining production lines while domestic orders remain uncertain. Taiwanese companies have increasingly pursued customers in Eastern Europe, particularly those involved in supporting Ukraine’s war effort.

Despite strong export growth, industry experts caution that Taiwan faces formidable competition. Ukraine has rapidly developed its own drone manufacturing ecosystem during the war and could emerge as a major exporter once hostilities end. Chinese producers also continue to dominate many segments of the market through lower prices and extensive manufacturing capacity.

Marcin Jerzewski of the European Values Center for Security Policy said one challenge for Taiwanese firms is proving their systems can perform under combat conditions, an area where Ukrainian manufacturers now possess extensive battlefield experience.

Analysts say Taiwan may ultimately find its strongest competitive advantage in specialized drone components rather than complete systems. Artur Savchii of Ukraine’s Snake Island Institute pointed to areas such as lithium-ion cells and advanced electronic components, where Taiwan’s technology sector could help reduce global dependence on Chinese suppliers.

Taiwanese companies are also expanding internationally through partnerships and joint ventures. Drone manufacturer Thunder Tiger has established a venture to produce drone motors in the U.S. state of Ohio and is exploring further expansion into Europe, betting that security concerns over Chinese technology will continue to drive demand for alternative suppliers.

National Security Minister Itamar Ben Gvir urged Prime Minister Benjamin Netanyahu to resume full-scale military operations in Lebanon, arguing that current measures were insufficient to counter Hezbollah attacks.

“It is time for the prime minister to take a firm stand with Donald Trump and tell him that Israel is returning to war in Lebanon,” Ben Gvir wrote on social media, calling for expanded military action and tougher economic measures against Lebanon.

Finance Minister Bezalel Smotrich also advocated a stronger response, specifically urging strikes on Beirut following Hezbollah drone attacks targeting Israeli troops and positions near the border.

“There is an urgent need to put an end to the threat posed by Hezbollah’s explosive drones,” Smotrich said on Telegram, proposing a significantly more forceful military response against targets in the Lebanese capital
Smotrich added that he had approved a special defense allocation of approximately 2 billion shekels ($692 million) to support the development of counter-drone capabilities for Israel’s security establishment.

The comments from the two ministers came after the Israeli military announced the death of another soldier in southern Lebanon, bringing the number of Israeli military fatalities since the conflict began to 23. One civilian contractor has also been killed, according to Israeli authorities.

The current round of fighting began on March 2 when Hezbollah entered the broader regional conflict following the killing of Iran’s supreme leader in joint U.S.-Israeli strikes, according to the report.

Hezbollah subsequently launched rocket attacks into Israel, prompting Israeli retaliatory operations that later expanded into a ground offensive in southern Lebanon.

Israeli forces are currently operating within a self-declared security zone extending roughly 10 kilometers inside Lebanese territory along parts of the southern border. At the same time, Israel has continued conducting airstrikes deeper inside Lebanon despite a ceasefire agreement that took effect on April 17.

Lebanon’s Health Ministry says the conflict has killed at least 3,123 people in the country since March, although official figures do not distinguish between civilians and combatants.

The growing pressure from coalition hardliners reflects increasing frustration within Israeli political circles over the effectiveness of the ceasefire. Opposition leader Yair Lapid described the truce as ineffective, arguing that continued attacks on northern Israel undermine its credibility.

“Either there is a ceasefire or we respond with disproportionate force to every attack against us,” Lapid told reporters.

The calls for escalation come as Israel and Lebanon continue participating in U.S.-mediated negotiations aimed at reducing hostilities and addressing longstanding security disputes. The two sides are expected to hold a fourth round of talks in early June.

However, prospects for a durable settlement remain uncertain. Hezbollah leader Naim Qassem has opposed the negotiations and rejected calls to disarm the group, while Hezbollah continues attacks on Israeli military targets in southern Lebanon and across the border.

The ministers’ statements underscore the growing tensions within Israel over how to handle the conflict, as military operations, diplomatic initiatives and domestic political pressures increasingly intersect in one of the region’s most volatile confrontations.

Trump told reporters on Wednesday that he intended to speak with Lai as his administration considers potential arms sales to Taiwan, the self-governed island claimed by China.

A direct conversation between sitting presidents of the United States and Taiwan would be unprecedented since Washington formally switched diplomatic recognition from Taipei to Beijing in 1979 under the “One China” policy framework.

Taiwan’s foreign ministry said Lai remained committed to maintaining stability across the Taiwan Strait and described China as “the disruptor of peace and stability.”

Lai would be “happy to discuss these matters with President Trump,” the ministry said in a statement.
“I’ll speak to him. I speak to everybody,” Trump said, adding that he had held productive discussions with Chinese President Xi Jinping during his visit to Beijing last week.

“We’ll work on that, the Taiwan problem,” Trump said.
The remarks came after Trump suggested that future U.S. arms sales to Taiwan could become part of broader negotiations with Beijing, raising concerns in Taipei over Washington’s long-term security commitments.

Taiwan’s government has since sought to reassure domestic and international audiences that U.S. policy toward the island remains unchanged and that Trump made no commitments to China regarding military support for Taipei.

Taiwan relies heavily on U.S. security backing to deter potential military action from China, which considers the island part of its territory and has repeatedly vowed to bring it under Beijing’s control, by force if necessary.

Taipei has also faced sustained pressure from Washington to increase defense spending and expand investment in American industries as part of closer economic and strategic coordination.

Trump previously disrupted diplomatic convention in 2016 when, as president-elect, he accepted a phone call from then Taiwanese president Tsai Ing-wen, drawing sharp criticism from Beijing and surprising foreign policy officials in both Washington and Asia.

Speaking at a news conference in Taipei marking two years since taking office, Lai said Taiwan remained committed to maintaining the status quo while accusing Beijing of escalating military pressure across the Indo-Pacific region.

“My government is committed to maintaining the status quo, and Taiwan is also a guardian of peace and stability in the Taiwan Strait,” Lai said.

“China is the one undermining peace and stability in the Taiwan Strait,” he added, citing Beijing’s expanding military exercises and deployments extending into the western Pacific.

The remarks came after Trump suggested last week that future US arms sales to Taiwan could serve as a bargaining tool in negotiations with China following meetings with Chinese President Xi Jinping.

Trump also indicated he was considering whether to hold direct talks with Lai, which would mark a significant break from decades of US diplomatic practice.

Washington shifted formal diplomatic recognition from Taipei to Beijing in 1979, and no direct conversation between sitting US and Taiwanese presidents has occurred since then.

Lai said communication channels between Taipei and Washington remained open and that he would use any opportunity to convey the views of Taiwanese society directly to the US administration.

“The Republic of China, Taiwan, is a sovereign and independent country,” Lai said, using Taiwan’s formal constitutional name.

“No country has the right to annex Taiwan. The people of Taiwan pursue a democratic and free way of life.”
Lai also defended Taiwan’s continued purchases of US weapons systems, describing military procurement as necessary to preserve peace and deterrence across the Taiwan Strait.

Taiwan has increased defense spending amid rising Chinese military activity around the island and continued pressure from Washington for Taipei to assume greater responsibility for its own defense.
In Beijing, China’s Taiwan Affairs Office dismissed Lai’s comments, accusing Taiwan’s ruling Democratic Progressive Party of destabilizing the region.

Spokesperson Zhu Fenglian said Taiwan could not prevent what she described as the “historical trend” of reunification with the mainland.
China, which claims Taiwan as part of its territory, has never renounced the use of force to bring the island under its control, though it continues to publicly advocate what it calls “peaceful reunification.”

Taiwan recently reported increased Chinese military operations near the island and published rare images of Chinese fighter aircraft and naval vessels operating in nearby waters.

Lai reiterated that Taiwan’s future could only be decided by its people and said Taipei remained willing to engage in dialogue with Beijing on the basis of equality and dignity.

The remarks came after Trump’s summit with Chinese President Xi Jinping in Beijing, where the US president acknowledged uncertainty over future military sales to Taiwan, raising questions about Washington’s security commitment to the self-governed island claimed by China.

Despite having no formal diplomatic relations with Taiwan, the United States remains Taipei’s most significant international supporter and is required under the Taiwan Relations Act to provide the island with defensive weapons.

Karen Kuo, spokesperson for Taiwanese President Lai Ching-te, said China’s intensifying military activities represented the main destabilizing force in the Indo-Pacific region, including the Taiwan Strait.

“Military sales between Taiwan and the US are not only a reflection of the US security commitment to Taiwan as stipulated in the Taiwan Relations Act, but also serve as a mutual deterrence against regional threats,” Kuo said in a statement.She added that Taiwan appreciated Trump’s continued support for stability in the Taiwan Strait and would continue strengthening cooperation with Washington.

Reuters previously reported that a proposed second US arms package for Taiwan valued at approximately $14 billion remains pending approval after the Trump administration approved an $11 billion package in December.

Taiwanese Deputy Foreign Minister Chen Ming-chi declined to comment directly on the pending sale, saying discussions remained ongoing with Washington.Taiwan’s government has also struggled to secure passage of a broader $40 billion defense spending proposal through an opposition-controlled parliament.

Earlier this month lawmakers approved roughly two-thirds of the requested budget, specifically allocating it for US arms procurement.US lawmakers from both major parties have urged the administration to continue supporting Taiwan militarily amid growing pressure from Beijing.

Trump also suggested he could speak directly with Lai regarding the proposed sale, telling reporters after his meeting with Xi that he needed to talk with “the person that’s running Taiwan.”Chen said Taipei was still trying to determine the “true intent” behind Trump’s comments.

A senior Taiwanese security official, speaking anonymously because of the issue’s sensitivity, said arms discussions should involve Taiwan rather than Beijing.China has increased military operations around Taiwan in recent years and has not ruled out using force to bring the island under its control.

Beijing rejects Lai’s government and labels him a separatist.Kuo reiterated Taiwan’s position that the Republic of China, the island’s formal name, is “a sovereign, independent democratic country,” dismissing Beijing’s sovereignty claims.

The remarks introduced fresh uncertainty into Washington’s long-standing security support for Taiwan following Trump’s summit with Chinese President Xi Jinping in Beijing on Friday.

Despite lacking formal diplomatic ties with Taiwan, the United States remains the island’s principal international backer and is legally obligated under the Taiwan Relations Act to provide defensive weapons.

In a statement, spokesperson Karen Kuo for Taiwanese President Lai Ching-te said China’s growing military pressure represented the primary destabilizing factor in the Indo-Pacific region and the Taiwan Strait.

“Military sales between Taiwan and the US are not only a reflection of the US security commitment to Taiwan as stipulated in the Taiwan Relations Act, but also serve as a mutual deterrence against regional threats,” Kuo said.

Taiwan thanked Trump for what Kuo described as his continued support for security in the Taiwan Strait and said Taipei would continue strengthening cooperation with Washington.

Reuters previously reported that a second US arms package for Taiwan valued at around $14 billion remains pending presidential approval after the Trump administration approved a record $11 billion package in December.

Speaking in Taipei, Deputy Foreign Minister Chen Ming-chi declined to comment directly on the pending package because it has not been formally announced, but said Taiwan remained in communication with US officials.

Taiwan’s opposition-controlled parliament has delayed the government’s broader effort to secure an additional $40 billion in defense spending. Earlier this month lawmakers approved roughly two-thirds of the requested amount, earmarking it specifically for US arms purchases.

Republican and Democratic lawmakers in Washington have publicly urged the Trump administration to maintain weapons sales to Taiwan amid growing Chinese military activity near the island.

Trump also suggested after meeting Xi that he could speak directly with Lai regarding the proposed arms sale, saying he would need to talk with “the person … that’s running Taiwan.”

Chen said Taipei was still attempting to understand the “true intent” behind Trump’s comments.
A senior Taiwanese security official, speaking anonymously because of the sensitivity of the issue, said discussions over arms sales should involve Taiwan rather than Beijing.

China claims Taiwan as its territory and has never ruled out the use of force to bring the island under its control. Beijing has rejected repeated offers of talks from Lai, whom Chinese officials label a separatist.
Kuo reiterated Taiwan’s long-standing position that the Republic of China, Taiwan’s formal name, is “a sovereign, independent democratic country.”

Chinese military operations around Taiwan continued during Trump’s visit to Beijing, according to Taiwanese officials, as tensions over the island’s future remained a central flashpoint in US-China relations.

The nonpartisan budget office said in a report released Tuesday that the projection reflected “one illustrative approach rather than an estimate of a specific Administration proposal,” citing limited details from the Pentagon regarding the scale and design of the system.

Trump ordered development of the futuristic missile shield during his first week back in office through an executive order calling for a comprehensive defense network capable of countering advanced missile threats from rival powers.

“Over the past 40 years, rather than lessening, the threat from next-generation strategic weapons has become more intense and complex,” Trump said in the order, referring to evolving missile technologies developed by U.S. adversaries.

The proposed system is envisioned as a multilayered defense architecture combining ground-based and space-based technologies designed to detect, track and intercept missiles during multiple phases of flight.
The initiative draws comparisons to Iron Dome, Israel’s missile defense network that has played a central role in intercepting rockets and missiles during regional conflicts. However, analysts note the U.S. project would operate on a vastly larger geographic and technological scale.

According to the CBO report, uncertainty surrounding the number and type of systems to be deployed makes precise long-term cost forecasting difficult. Last year, the agency estimated that space-based elements alone could require up to $542 billion over 20 years.

Congress has already approved approximately $24 billion for the initiative through a broader Republican-backed tax and spending package enacted last summer.

Gen. Michael A. Guetlein, the U.S. Space Force officer overseeing the Golden Dome project, defended the program’s financial outlook during congressional testimony last month, arguing that outside estimates relied too heavily on legacy defense procurement models.

“That is not what Golden Dome is doing,” Guetlein told lawmakers. “We are laser focused on affordability.”
Democratic Senator Jeff Merkley, who requested the CBO assessment, criticized the scale of the projected expenditure, describing the missile shield initiative as a costly expansion of defense contracting.

The report is likely to intensify debate in Congress over military spending priorities as the administration pushes forward with one of the most ambitious missile defense proposals since the Cold War-era Strategic Defense Initiative.

Trump is scheduled to visit Beijing from Wednesday to Friday for high-level talks with Xi, where the issue of self-governed Taiwan is expected to feature prominently amid ongoing tensions between Washington and Beijing.

China claims Taiwan as part of its territory and has repeatedly refused to renounce the use of force to bring the island under its control. Beijing has increased military pressure on Taiwan in recent years through naval patrols, air incursions and large-scale military exercises around the island.Speaking to reporters in Taipei, Taiwan Foreign Minister Lin Chia-lung said the government remained in close contact with Washington and was carefully monitoring preparations for the Trump-Xi meeting.

“We have also maintained continuous communication with the United States whether through public statements from the U.S. government or through non-public channels. We are confident in the stable development of Taiwan-U.S. relations,” Lin said.“The U.S. government has repeatedly expressed that its Taiwan policy will not change,” he added.

The United States maintains unofficial ties with Taiwan but is legally obligated under the Taiwan Relations Act to provide the island with defensive capabilities. Washington has long viewed peace and stability in the Taiwan Strait as central to Indo-Pacific security.U.S. Secretary of State Marco Rubio said last week that maintaining stability across the Taiwan Strait remained a priority for Washington.

At the same time, the United States has intensified pressure on allies and partners, including Taiwan, to increase military spending in response to growing geopolitical threats and expanding Chinese military capabilities.Taiwan’s opposition-controlled parliament last week approved a reduced special defense budget, falling short of the amount requested by the government.

A senior U.S. official said on Sunday that Washington was disappointed by the lower allocation, arguing the spending level did not fully match Taiwan’s security needs.Lin urged lawmakers to take corrective action to strengthen defense funding, saying deterrence depended on Taiwan’s ability to demonstrate credible self-defense capabilities.

“Peace depends on strength it requires demonstrating the defense capability for self-defense in order to deter aggression,” Lin said.He also accused China’s Communist leadership of accelerating military expansion and promoting authoritarian influence beyond its borders.

The Trump-Xi summit is expected to be closely watched by governments across Asia and the wider international community for indications of how the world’s two largest powers intend to manage growing strategic rivalry, particularly over Taiwan and regional security.