Moored quietly in Philadelphia, the SS United States remains a striking artefact of another era. A time when American engineering, ambition, and global leadership were unquestioned. On her 1952 maiden voyage, she shattered transatlantic speed records and symbolised the confidence of a nation ready to lead.
Decades later, the ship is slated to become an artificial reef off Florida’s coast. Its final journey, to the re-named ‘Gulf of America,’ is rich in symbolism. Where once the United States embodied strength and alliance, it now prompts broader questions about the changing shape of power, and what long-time partners can reasonably expect in an era of recalibration.
As Australia’s alliance with the United States enters a period of strategic reassessment, join the Nexus APAC team in exploring the key developments driving Australia’s recalibration toward greater engagement with Europe and the United Kingdom.
Australia’s Security Legacy
Australia’s foreign policy has long reflected its deep integration into the security frameworks of major Western powers.
From Federation to World War II, strategic alignment with the United Kingdom defined Australia’s defence posture.
Following World War II, the alliance with the United States, formalised through the Australia, New Zealand, United States Security Treaty (ANZUS), became central to Australia’s national security.
Subsequent decades saw deeper cooperation, ranging from joint operations in Asia and the Middle East, to intelligence sharing through the Five Eyes partnership, and the establishment of Joint Defence Facility Pine Gap in Alice Springs.
Most recently, the 2021 announcement of the AUKUS trilateral partnership signalled a step-change in defence technology cooperation, notably through the planned acquisition of nuclear-powered submarines.
However, strategic conditions are rarely static, and recent developments have highlighted the importance of diversification.
Changing Times
Australia continues to value its alliance with the United States. Nevertheless, recent signals, both economic and political, have prompted a degree of re-evaluation in Canberra.
The return of President Donald Trump to the White House has brought a renewed emphasis on ‘America First’ economic policies. This includes an increasingly protectionist trade agenda and blanket tariffs on trade partners.
Diplomatically, a subtle shift is also apparent. As at 1 August 2025, Prime Minister the Hon Anthony Albanese MP has yet to hold a formal call with President Trump since the latter’s inauguration in January.
While this may be a result of scheduling rather than policy divergence, it has not gone unnoticed by analysts and political commentators.
In addition, the recent announcement of a US Department of Defense review into AUKUS has sparked renewed debate in Australia over the reliability of the United States as a strategic partner.
Former Prime Minister, the Hon Malcolm Turnbull, stated that there is a “very, very high” chance that US-built Virginia-class submarines will never come under Australian control.
Looking to Europe
In this context, Europe has re-emerged as a vital partner. Australia’s relationship with both the United Kingdom and the European Union has matured, and encompasses defence dialogue, climate cooperation, and increasingly, economic diplomacy.
Several developments underscore this renewed focus, including:
- The European Australian Business Council (EABC): The EABC has assumed an increasingly prominent role in promoting commercial diplomacy. Amid renewed discussions surrounding an Australia–EU Free Trade Agreement, the EABC led a joint industry statement urging that a deal be reached without delay. Chair of the EABC, Duncan Lewis AO DSC CSC, stated that “the turmoil driven by massive trade disruption and security concerns means Australia needs to secure the best possible economic ties and strategic partnerships with like-minded countries.”
- Prime Minister Albanese’s relationship with UK Prime Minister Keir Starmer: Prime Minister Albanese has established a strong personal rapport and constructive working relationship with UK Prime Minister, the Rt Hon Sir Keir Starmer KCB KC MP. Both leaders have held several phone calls on topics such as defence cooperation, AUKUS, and bilateral cooperation.
- Role of the Organisation for Economic Co-operation and Development (OECD): The 38-member OECD Council recently agreed to renew the mandate of OECD Secretary-General, the Hon Mathias Cormann, for a second and final 5-year term. Under the leadership of the former Australian Finance Minister, the OECD has focused on inclusive growth, international taxation, and resilient supply chains, all of which align with Australian strategic interests.
Future of Diversification
Australia’s alliance with the United States remains a foundational one. From integrated military operations to joint cyber capabilities and intelligence sharing, the partnership continues to serve as a strategic cornerstone.
However, amid growing global instability and uncertainty, Australia is likely to continue diversifying its economic and national security partnerships. This strategic shift is reflected in Talisman Sabre 2025, a biennial military exercise hosted in Australia. Running from July to August, this year’s iteration is the largest to date, involving military personnel from 19 nations.
Australia’s recent moves are not about replacing one partner with another, but about developing flexibility, resilience, and independence in a multipolar world. Diversified partnerships, whether through economic frameworks, defence dialogues, or multilateral institutions, enhance Australia’s ability to respond to emerging challenges and seize new opportunities.
Photo credit: Simon Dawson / Downing Street
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