'Deeply concerning': AUKUS deal under threat as Trump launches review

After news broke overnight of the development, with the Pentagon reportedly saying the AUKUS deal must be weighed to establish whether it aligns with Mr Trump's "America First" approach, a spokesperson for Deputy Prime Minister Richard Marles said in a statement that it was "natural that the Administration would want to examine this major undertaking, including progress and delivery."

"We are committed to AUKUS and we look forward to working closely with the US on the review," the spokesperson said.

"The United States advised Australia and the UK of the review. All three countries are committed to ensuring AUKUS meets national and trilateral objectives.

"Importantly, AUKUS will grow both US and Australian defence industry as well as generating thousands of new manufacturing jobs."

Opposition defence spokesperson Angus Taylor called on Mr Albanese to "urgently seek a direct meeting with President Trump to safeguard the AUKUS agreement and ensure Australia's national interests are protected."

"If this review has been triggered by the Australian government's refusal to commit to increased defence spending and its sanctioning of two Israeli ministers, then the government has serious questions to answer about how it is managing our most critical allies," Mr Taylor said in a statement on Thursday morning.

"The Coalition supports AUKUS but it relies on trust. You can't claim to be a reliable partner abroad while picking and choosing your principles at home. Australia cannot afford to be a fairweather friend.

"This government has sent mixed messages to our allies and now we're seeing the consequences."

Opposition frontbencher Bridget McKenzie earlier told Nine's Today the AUKUS pact and Australia's strategic defence partnership with the US needed to be "the Prime Minister's primary concern."

"[It is] a deeply concerning development," Senator McKenzie said. "We cannot defend ourselves without these relationships."

The Prime Minister will attend the G7 Leaders' Summit alongside Mr Trump in Alberta, Canada, from June 15 to 17, creating an opportunity to finally meet face-to-face with the President, although no plans have been confirmed.

The Trump administration has called for Australia to lift defence spending and complained about strict biosecurity rules for meat imports, as well as the low prices paid for US-made medicines on the PBS, while holding out on providing exemptions to sweeping tariffs imposed on key Australian exports.

Mr Albanese told the National Press Club on Wednesday that his government would not trade away "the things that make us the best country on earth" and said while he did not want to pre-empt any conversation with the President, "we'll only sign up to things that are in Australia's national interest."

"Australia should decide what we spend on Australia's defence. Simple as that," the Prime Minister said. "We will always provide for capability that's needed."

AUKUS is a three-nation security alliance between Australia, the UK and the US agreed in 2021 under the prime ministership of ex-Liberal leader Scott Morrison.

It was formed to counter China's strategic moves in the Pacific arena and was underpinned by an agreement between the US and the UK to provide Australia with access to nuclear-powered submarine technology, to eventually replace its aging Collins-class boats, although the first submarine is not expected to join the Australian fleet for years.

Australia, which in February made the first of six $US500 million (about $800 million) payments to the US for the boats, is supposed to initially buy between three and five off-the-shelf Virginia-class boats.

But military experts say that while the US has the largest nuclear-powered submarine fleet in the world, its shipyards are not building them fast enough to meet the US Navy's own needs.

The AUKUS review will be headed by US defence undersecretary Elbridge Colby and is expected to take about 30 days.

The United Kingdom had recently completed an AUKUS review and reaffirmed its support, appointing Sir Stephen Lovegrove as its AUKUS Adviser.

Greens Defence and Foreign Affairs spokesperson David Shoebridge predicted that Mr Trump would "use this review to either terminate AUKUS and pocket the money already paid, or extract an even more eye-watering sum from Australia to stay in the sinking project without any hard promises for the US to deliver."

"Donald Trump is erratic, reckless and careless of America's allies and alliances but he does have one fairly constant trait, he puts US interests first and allies last," Senator Shoebridge said.

"The USA reviewing AUKUS shows what the Greens have been warning about for years - this deal makes Australia a junior partner in America's military strategy, not an equal ally.

"The Australian public deserves an urgent inquiry into AUKUS before Labor wastes more billions on submarines we will never see.

"It's pretty clear what any US review into AUKUS will say, the US does not have any spare submarines to give to Australia."

Senator McKenzie said there was "now a growing list of serious issues and tasks for the prime minister with his meeting with President Trump next week."

"Any undermining of this serious and substantial alliance between our two countries should be of grave concern to all of us because the reality is there is a very real vulnerability for us," she said.

"Obviously, we wish him every success in strengthening that relationship and not weakening it."

The spokesperson for Mr Marles said there was bipartisan support for AUKUS in the United States, noting the passage of provisions in the National Defence Authorization Act in 2023 to enable the transfer of US Virginia class submarines to Australia, and to enable Australians to work on maintenance activities of US Virginia class submarines.

"Our engagement with the Trump Administration and across the full political spectrum in the United States has shown clear and consistent support for AUKUS," the spokesperson said.

"We look forward to continuing our close cooperation with the Trump Administration on this historic project."

Mr Albanese has previously discussed AUKUS in phone calls with Mr Trump, while Mr Marles has discussed the deal with US Secretary of Defence Pete Hegseth, both in February and May.

"The president is very aware, supportive of AUKUS," Mr Hegseth said after the February meeting with Mr Marles.

"(He) recognises the importance of the defence industrial base."

Mr Marles responded that the pair had discussed how the US and Australia could advance their longstanding diplomatic relationship in terms of national security, including AUKUS.

Foreign Minister Penny Wong discussed AUKUS with US Secretary of State Marco Rubio in January.

Australia's military budget is expected to rise to 2.3 per cent of gross domestic product, or output, by 2034. The US administration has called for Australia to increase that spending to around 3.5 per cent.

Mr Taylor last week called on the Albanese government to commit to "at least" 3 per cent, but Mr Albanese on Wednesday said he would not set an "arbitrary" figure.

Australia tore up its $90 billion diesel-powered submarine deal with France to sign on to AUKUS and is contracted to buy several off-the-shelf submarines costing about $US4 billion each, before making its own.

The first Australian-made boats are not due to be operational until the 2040s.