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.

Australia’s defense minister has dismissed concerns that a deal between the U.S., Australia and Britain to provide his country with nuclear-powered submarines could be in jeopardy, following a report that the Pentagon had ordered a review.