Australian Prime Minister Malcolm Turnbull reacts as he speaks during an official function for the Liberal Party during the Australian general election in Sydney, Australia, July 3, 2016.
Australian Prime Minister Malcolm Turnbull reacts as he speaks during an official function for the Liberal Party during the Australian general election in Sydney, Australia, July 3, 2016. Reuters/David Gray

Prime Minister Malcolm Turnbull's refugee deal could be in trouble. As part of the deal the Australian PM with former US President Barack Obama, the US would take refugees from Nauru and Manus Island.

US President Donald Trump said the refugee deal Turnbull struck with Obama was a “dumb deal.” This comes in the wake of what Trump described was “the worst call by far” with Turnbull over the weekend.

Trump is not happy with the refugee deal he was left with after the Obama administration left office. In return for the resettlement of refugees, Australia could be asked to send troops to Iraq.

“It may take the form of a battalion in Iraq or freedom-of-navigation patrols in the South China Sea,” James Curran from the US Studies Centre told AAP (via The Advertiser). If Australia were to send troops to the Middle East, it could double the commitment of 780 personnel who are currently there.

Over the weekend, the Washington Post reported Trump saying that Australia was looking to send the “next Boston bombers” to the US. Trump also called his phone call with Turnbull as “the worst call so far” in the day. Although the call was meant to last for an hour, it was cut short by the US president in 25 minutes.

Meanwhile, Turnbull emphasised the relationship between the two countries was strong. “The fact we received the assurance that we did, the fact that it was confirmed, the very extensive engagement we have with the new administration underlines the closeness of the alliance,” he said. “But as Australians know me very well — I stand up for Australia in every forum — public or private.”

Journalist Michelle Grattan described the deal as “a big and damaging issue in the Australian-American partnership.” The Australian prime minister has been criticised for not denouncing Trump’s highly controversial travel ban, which denies people from seven Muslim-majority countries entry to the United States.

According to Curran, if Australia is “prepared to kowtow to Trump's petulance and impulsiveness,” it might not sit well for the ANZUS alliance. Australian Strategic Policy Institute director Peter Jennings shares the sentiment. “I think it's sensible for us to be working through all manner of contingencies, which includes a temporary freezing of the alliance, a sort of lull in alliance cooperation,” he told the ABC.