Malcolm Turnbull, who was behind the French submarine contract that Morrison dramatically tore up in favour of Aukus, said Australia needs to "wake up", realise it's a "bad deal" which the US could renege on at any point, and make other plans before it is too late.

The announcement puts the Australian Labor government under great pressure to make major concessions to the US as Prime Minister Anthony Albanese flies to Canada for the G-7 summit and a possible meeting with Trump.

LONDON (Reuters) -Britain said on Thursday it understood a decision by U.S. President Donald Trump's administration to launch a formal review into the AUKUS submarine pact, repeating London's position that the project was crucial to peace and security.