Donald Trump to review UK defence deal involving Sheffield Forgemasters

The US is to review a major defence deal with the UK and Australia, which includes a multi-million pound contract for Sheffield Forgemasters to build components for nuclear-powered attack submarines.
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However, Donald Trump has put all of that in doubt, by ordering a review of the Aukus pact, which includes the submarine deal, as it did not meet the President’s “America first” agenda.

It will be headed by Elbridge Colby, an official at the US defence department who has previously described himself as “sceptical” of the Aukus partnership.

But a UK Government spokesperson sought to play down the prospect of an American withdrawal, saying Aukus was “one of the most strategically important partnerships in decades”.

They added: “It is understandable that a new administration would want to review its approach to such a major partnership, just as the UK did last year.

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“The UK will continue to work closely with the US and Australia at all levels to maximise the benefits and opportunities which Aukus presents for our three nations.”

Defence Secretary John Healey during a visit to open the new BAE Systems artillery factory in Sheffield. Credit: Danny Lawson/PA Wireplaceholder image
Defence Secretary John Healey during a visit to open the new BAE Systems artillery factory in Sheffield. Credit: Danny Lawson/PA Wire | Danny Lawson/PA Wire

Announced in 2021, Aukus involves the three nations building a new generation of nuclear-powered attack submarines and cooperating in other areas of advanced defence technology.

An anticipated 7,000 additional British jobs will be generated through the submarine programmes, and at the peak there will be more than 21,000 people working on the UK supply chain.

Last year’s deal, which will see the nuclear-powered subs join the Royal Navy in the late 2030s, was agreed with Joe Biden’s Defence Secretary Lloyd James Austin III.

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Earlier this week, Mr Healey told The Yorkshire Post that the additional investment in Forgemasters for the increased programme was an example of the “defence dividend in Yorkshire”.

The Aukus deal will also see Australia buy three Virginia-class submarines from the US ahead of the new vessels being built.

That provision has led some in Washington, including Mr Colby, to question the deal on the grounds that the US may need those submarines if it finds itself in a war with China over Taiwan.

£25m BAE Systems' factory for South Yorkshire

The Defence Secretary has opened a £25m BAE Systems factory in South Yorkshire that is the first to restore gun barrel manufacturing to the UK.

The huge facility, which will become operational by the end of 2025, will make Sheffield the home of UK howitzer production.

Improved artillery capacity in Britain was a key recommendation of last week’s Strategic Defence Review.

John Healey, the Defence Secretary, opened the factory this morning, which is expected to create 200 new high skilled jobs and support more than 60 businesses.

"This new factory is a big boost for South Yorkshire and a significant step forward in strengthening our British defence industrial base,” Mr Healey said.

“This is a vote of confidence in our world-leading defence sector and good, skilled British jobs, underpinned by this government’s plan for change.

“I welcome BAE Systems’ long-term commitment to this new site, which demonstrates how defence can be an engine for growth, bringing investment and opportunities to communities across the UK, including right here in South Yorkshire.”

John Borton, of BAE Systems, added: “Our significant investment adds to Sheffield’s rich manufacturing history and reputation as an industrial powerhouse and will develop a highly skilled workforce in the local area, while also forming an important part of the UK’s critical defence infrastructure.”

But last month, the new US ambassador to London used his first major speech in the job to back Aukus.

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Warren Stephens told an audience in Parliament, including Prime Minister Sir Keir Starmer, that the US was “proud to stand alongside Britain and Australia, two of our closest allies, as we deepen our collaboration to respond to a changing world”.

The Liberal Democrats said the US’ decision to launch a review of Aukus had “thrown another grenade into our security partnership” and urged Sir Keir to meet the Australian prime minister to “develop contingency plans” should America withdraw from the partnership.

Helen Maguire, the party’s defence spokeswoman, said: “Even in the face of an imperial Putin and the rising threat posed by China, this White House simply can’t be relied upon to support our collective defence.

“Our national security demands that we ramp up talks with our Commonwealth friends and work to plug the gap that the US is threatening to leave in European and global security.”

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