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America’s $40 Billion Blind Spot: Why World’s Largest Arms Exporter Hasn’t Sold a Single Submarine in 50 Years?

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 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?

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.

USS-Virginia-Submarine
File Image: USS West Virginia Submarine: Via US CENTCOM

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