The US has been the world’s largest defense exporter for more than three decades now.

According to SIPRI (Stockholm International Peace Research Institute), the United States accounted for 42% of global arms exports between 2021 and 2025.

For perspective, during this period, France was the world’s second-largest defense exporter, accounting for only 9.8% of global arms exports.

However, despite its dominant position in global arms exports, the United States has notably been absent from a particular high-value weapon system market that could have generated billions of dollars in additional revenue for its defense firms.

Ironically, Washington has stayed out of this business despite leading the world in this niche technology for over five decades.

On July 6, Canada reportedly selected the winner of the Canadian Patrol Submarine Project (CPSP) deal, expected to cost nearly US$ 30 billion, with Germany’s TKMS outdoing South Korea’s Hanwha.

Similarly, India is in the final stages of signing a major submarine deal with ThyssenKrupp Marine Systems (TKMS) under Project 75(I).

Both Canada and India are strategic partners of the US. One might wonder why the US defense companies were not even in the running for these “big ticket” deals.

This, despite the fact that the US is not only the world’s largest submarine operator, but its submarines are also some of the most advanced in the world. According to the Global Firepower Index 2026, both Russia and the US operate 66 submarines.

However, while Russia operates a mix of diesel-electric and nuclear submarines, all of the US’s submarines are nuclear-powered.

China is fast catching up with 61 submarines; however, China also operates a mix of diesel-electric and nuclear submarines.

However, Russia (and formerly the Soviet Union) has exported submarines to Algeria, Bulgaria, China, Cuba, Egypt, India, Indonesia, Iran, North Korea, Poland, Romania, Syria, Venezuela, Vietnam and others, and China has exported to Pakistan, Myanmar, Bangladesh and Thailand.

Interestingly, the US, despite its technological lead in the field, has not exported a single submarine to any country in the last 50 years. In fact, the last submarine the US exported was in 1973 to Taiwan.

So, why, despite its dominant position in global arms export and its technological lead in the field, has the US not exported a single submarine to any country in over 50 years?

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US Submarine Exports in History

The US was not always averse to exporting submarines. After the Second World War, the US emerged as one of the world’s largest submarine exporters.

During the war, the US constructed over 200 submarines, and by the time the war ended, the US had 232 submarines in commission.

However, within years of the end of the Second World War, a new Cold War began with the Soviet Union, and the US launched a massive modernization campaign for its submarines.

Under the modernization plan, the US decommissioned hundreds of its late-war-era Balao- and Tench-class diesel-electric submarines.

This left the US with dozens of decommissioned submarines.

At the same time, the US was financing a massive reconstruction plan in Europe under the Marshall Plan and building Europe’s military capabilities to create an effective deterrent against the Soviet Union.

For this purpose, the US decided to export these older, decommissioned, diesel-electric submarines to its allies. Between 1950 and 1970, the US exported nearly 50 submarines to its partners, including Turkey, Spain, Italy, Greece, the Netherlands, Canada, Taiwan, and others.

In fact, between 1945 and 1975, the United States accounted for roughly 25% of global exports of diesel-powered submarines.

Most of these were Balao-class diesel-electric submarines built during World War II.

Meanwhile, in 1954, the US launched USS Nautilus (SSN-571), the world’s first nuclear-powered submarine, heralding the era of nuclear-powered submarines.

Nuclear-powered submarines have key advantages, such as unlimited endurance, as they can stay submerged for months, maintain high underwater speeds consistently, and have global reach.

After the launch of USS Nautilus, Washington gradually phased out diesel-electric submarines. After 1954, the US built only three Barbel-class diesel-electric submarines.

By the early 1960s, all new US Navy combat submarines were nuclear-powered. The last diesel-electric attack submarine (USS Blueback) was decommissioned in 1990, leaving Washington with only nuclear-powered submarines.

Why Does the U.S. Not Export Nuclear Submarines?

The US nuclear-powered submarines are considered the best in their class; however, to date, Washington has not exported this technology to any country for various reasons.

Firstly, the U.S. Navy has long opposed even the export of diesel-electric submarines due to concerns about the impact of submarine technology proliferation on the ability of its forces to operate securely in coastal waters worldwide.

Submarines fall under the US Munitions List and are subject to the International Traffic in Arms Regulations (ITAR) and the Arms Export Control Act.

When it comes to nuclear propulsion technology, the US Navy is highly sensitive, as it adds extra layers of control under the Atomic Energy Act.

The US nuclear propulsion, quieting technology, sonar, and combat systems are considered among America’s most protected “crown jewels.”

The US has deliberately avoided proliferating this technology to preserve its undersea dominance.

In fact, Washington is so sensitive about submarines’ nuclear propulsion technology that it has refused to share this technology even with its close allies, such as France, Japan, Taiwan, or Canada.

The only two exceptions are the UK and Australia.

The US has a long-standing special nuclear propulsion technology-sharing agreement with the UK, dating back to the 1958 US-UK Mutual Defense Agreement.

The US supplied the reactor for Britain’s first nuclear sub, HMS Dreadnought, and ongoing collaboration allows the UK to design and build its own boats.

However, this is alliance cooperation, not a commercial export.

Similarly, in 2021, the US, the UK, and Australia signed the AUKUS agreement, under which the US has agreed to sell/transfer up to three Virginia-class SSNs to Australia, starting in the early 2030s.

Another issue is US industrial capacity, which is already struggling to meet US Navy demand for Virginia-class submarines.

In its current modernization drive, the U.S. Navy hopes to add two to three Virginia-class attack submarines to its fleet annually until 2043.

In fact, it’s not just the US that is sensitive about exporting nuclear submarines.

Globally, nuclear-powered submarines are operated by only six countries: the US, Russia, China, France, the UK, and India.

The US, Russia (formerly the Soviet Union), and the UK have been operating nuclear submarines for over six decades now.

However, to date, there is only one example of a country exporting/leasing a nuclear-powered submarine to another country.

The Soviet Union first leased a Charlie I-class (K-43) nuclear-powered submarine to India in 1988–1991.

India operated it as INS Chakra.

Further, Russia leased an Akula-class submarine (Nerpa/K-152) to India from 2012 to 2021, which New Delhi operated as INS Chakra II.

The US, the UK, China, France, and India have never exported or leased a nuclear submarine to any country.

In fact, how all countries are highly protective of nuclear-powered submarines can be gauged from the fact that even China refused this technology to its all-weather ally, Pakistan.

Leaked documents revealed that Pakistan formally asked China for nuclear-powered submarine technology and sea-based nuclear second-strike capabilities to counter India.

However, Beijing ultimately refused to provide the technology, citing global non-proliferation commitments and a desire to avoid triggering a regional nuclear arms race.

Instead, China is providing Pakistan with eight Hangor-class diesel-electric attack submarines, under a US$5 billion deal.

However, since the US no longer produces diesel-electric submarines and is reluctant to export nuclear-powered submarines even to its close allies, Washington is effectively out of the global submarine business, which is dominated by countries such as Germany, France, Russia, China, and Spain, and the situation is unlikely to change in the near future.

• Sumit Ahlawat has over a decade of experience in news media. He has worked with Press Trust of India, Times Now, Zee News, Economic Times, and Microsoft News. He holds a Master’s Degree in International Media and Modern History from the University of Sheffield, UK. 
• He can be reached at ahlawat.sumit85 (at) gmail.com

The post America’s $40 Billion Blind Spot: Why World’s Largest Arms Exporter Hasn’t Sold a Single Submarine in 50 Years? appeared first on EURASIAN TIMES.

President Donald Trump said the US and Israel had decided to hold off on new strikes on Iran — provided that a deal to end the ongoing conflict is reached quickly.

Meanwhile, a report published by a US-based think tank recently warned that American inventories of key air defense interceptors have fallen sharply, raising the prospect that US and coalition forces may need to accept greater risks in future missile defense operations.

When the US launched Operation Epic Fury in February 2026, President Donald Trump said the hostilities would last only a few days, a deadline that was subsequently moved to a few weeks. However, five months later, there is no end in sight to the war, which has now spilled over into much of West Asia. 

During the war, the US has severely drawn down its air defense interceptors, as documented by the US-based think tank CSIS (Center for Strategic and International Studies). The CSIS report estimates that stockpiles of the Patriot and THAAD (Terminal High Altitude Area Defense) have been greatly reduced in the ongoing conflict.

Published on July 27, 2026, the report—“Renewed Iran War Would Test Diminished Interceptor Inventories” authored by Mark F. Cancian and Chris H. Park—updates an earlier CSIS assessment released around the ceasefire agreed to by both sides on April 8, 2026.

“The air defense campaign has been largely successful with high—though not perfect—interception rates. While some Iranian attacks got past defenses, causing casualties and extensive base damage, these attacks have been unable to diminish U.S. and coalition operations. This has required extensive use of interceptors, with Patriot inventories now under 1,000 and THAAD inventories at about 250,” states the report.

The previous report had estimated that the US Patriot interceptor inventory shrank by 55%. However, the updated figures suggest the stockpile has further shrunk by an additional 10% since the truce, and that approximately 65% of US Patriots have now been lost since the war began.

The report estimates that Patriot inventories now stand at under 1,000 (the most recent figures place the range at 759–827) and that THAAD inventories stand at about 250 (the latest figures put it at roughly 234–278).

Both systems have been heavily used to defend US bases, Gulf partners, and Israel against Iranian ballistic missiles, cruise missiles, and related threats. CSIS apparently draws its estimates from publicly available legislative and Pentagon budget documents, supplemented by open-source data on rounds expended in the Gulf.

“Diminished stockpiles may force the United States and its coalition partners to take more risks with interceptions. There are no good alternatives to Patriot and THAAD for ballistic missile defense. Navy ships, with Standard Missiles that can intercept such threats, generally are too far away,” the report warned.

Notably, an NBC report recently stated that US commanders are choosing not to take down Iranian projectiles that are headed into uninhabited regions of US sites in the vicinity because they do not want to squander their interceptor missiles.

This alleged tactic, if true, marks a shift from previous air and missile defense procedures in the region, such as when a US-manned Patriot detachment protected a mostly evacuated Al-Udeid Air Base in Qatar from a barrage of Iranian ballistic missiles in response to Operation Midnight Hammer in June 2025.

Despite a dearth in air defense interceptors, the US has vowed to hit Iran very hard, a move that will almost certainly trigger Iranian retaliation and further cause depletion in Patriot and THAAD interceptors. The situation may become dire, given that the production of these missiles takes woefully long—Lockheed delivered just about 600 interceptors in 2025, and only 96  THAAD interceptors are manufactured per year. 

The United States is therefore consuming its most valuable air-defense munitions far faster than industry can replace them. Some analysts have suggested that depleting offensive and defensive stockpiles contributed to the Trump administration’s decision to accept a ceasefire, including the latest one where the U.S. and Israel agreed to hold off on new strikes on Iran.

Other reports indicate Trump may have changed the offensive plans after talking with Saudi Arabia and after Iran also spoke to Riyadh, besides Pakistan and Turkey.

Trump insisted the US was still “locked and loaded and ready to go against the Islamic Republic of Iran,” but added that Tehran and other Middle Eastern countries had asked him to hold off on fresh strikes. “Based on this request, I have agreed, for the future benefit of the WORLD and, likewise, the survival of a successful and prosperous Iran, to cancel the attack, subject to being able to rapidly make a DEAL,” Trump posted on his Truth Social platform.

Meanwhile, Strategists also warn that the shortages create near- to medium-term risks for U.S. readiness in other theaters, particularly a potential conflict with China in the western Pacific.  “Expended munitions create a near- to medium-term risk for U.S. readiness to fight a war against China in the western Pacific,” the report stated.

In the near term, Washington is unlikely to spare Patriots for Ukraine, which continues to face intense Russian attacks and has repeatedly requested additional interceptors. Russia has been exploiting the vacuum in air defense coverage to strike Kyiv with lethal ballistic and hypersonic missiles, as the EurAsian Times reported.

Pentagon Boosting Interceptor Production

Noteworthy steps have been taken in 2026 to rapidly expand production of Patriot (primarily PAC-3 MSE) and THAAD interceptors.

These efforts use a new “Acquisition Transformation Strategy” approach that emphasizes multi-year framework agreements, undefinitized contract actions (UCAs), long-term demand signals, and parallel investments in facilities, the workforce, and bottleneck components.

For instance, the US Army awarded Lockheed Martin a contract on July 29 worth up to $58.6 billion to produce Patriot interceptor missiles.

This comes after the US awarded Lockheed Martin a $4.7 billion contract in April 2026 to accelerate the production of the Patriot Advanced Capability-3 (PAC-3) Missile Segment Enhancement (MSE) interceptors. The agreement stipulated that the annual output of PAC-3 MSE interceptors would be increased from nearly 600 to 2,000 units.

The Army states that the latest contract establishes a multiyear procurement strategy for the interceptors from fiscal 2026 through 2032 by converting a prior one-year deal awarded in April into a seven-year draft agreement.

The Pentagon Munitions Acceleration Council (MAC) also reportedly signed an emergency procurement agreement with key vendors to boost production.

Meanwhile, Lockheed has stated that it is investing $8–9 billion through 2030 across more than 20 sites in the United States.

Additionally, the US has agreed to grant Ukraine a license to produce Patriot interceptors, making it the latest European country to manufacture these prized munitions, alongside Germany, Romania, and Poland.

Not just that, Lockheed Martin announced the introduction of the PAC-3 Adapted Capability Effector (PAC-3 ACE), a low-cost interceptor built to defeat a wide range of threats for less than half the cost of a PAC-3 MSE.

As for THAAD, the Pentagon signed a framework with Lockheed Martin to quadruple annual production from 96 to 400 interceptors.

The framework was intended to lead to a formal contract award (subject to congressional appropriations). This was later executed in June 2026 with an undefinitized contract action (UCA) valued at up to $35 billion to increase manufacturing through 2030. 

The Pentagon, in collaboration with L3Harris and Lockheed Martin, announced two historic seven-year framework agreements earlier this week to increase production capacity for critical components of the Terminal High Altitude Area Defense (THAAD) and the Patriot Advanced Capability-3 (PAC-3) Missile Segment Enhancement (MSE) interceptors.

• Contact the author at sakshi.tiwari13 (at) outlook.com
• Follow EurAsian Times on Google News

 

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