US President Donald Trump has defended his concerns about the Australia refugee deal he yesterday described as "dumb", but still appears no closer to finalising it.

Key points: Donald Trump has signalled he is unwilling to move forward with the Australia refugee deal

Donald Trump has signalled he is unwilling to move forward with the Australia refugee deal Mr Trump says he "loves Australia" and "just don't worry about the 'tough' phone calls"

Mr Trump says he "loves Australia" and "just don't worry about the 'tough' phone calls" The phone call with PM Malcolm Turnbull regarding the deal was "tense" and abruptly cut short

The deal to take refugees from Manus Island and Nauru became a flashpoint in US-Australia relations yesterday when US media published details of a call between Mr Trump and Prime Minister Malcolm Turnbull, in which the US leader harangued Mr Turnbull, slamming the deal as the "worst ever" and accusing Australia of wanting to export "the next Boston bombers".

Mr Trump followed that up with a tweet in which he railed against the "dumb deal".

Australia's Ambassador, Joe Hockey, has attended a meeting at the White House this morning. It is unknown who the meeting was with at this stage.

Overnight Mr Trump slightly moderated his language, telling a Washington function that: "I have a lot of respect for Australia, I love Australia as a country — but we have a problem".

And he urged people not to "worry" about the "tough" phone calls he was having with world leaders.

"A lot of countries are taking advantage of us. Terribly taking advantage of us," he said.

"We had one instance in Australia … for whatever reason (then-president Barack) Obama said that they were going to take probably well over a thousand illegal immigrants who were in prisons and they were going to bring them and take them into this country, and I said why," he said at a National Prayer Breakfast.

The agreement actually covers people on Manus Island and Nauru found to be genuine refugees.

"I just wanted to ask a question of you — why? 1,250… it could be 2,000 it could be more than that," Mr Trump said, referring to the number of refugees covered by the agreement.

"I said 'why, why are we doing this. What is the purpose?' So we will see what happens.

"You know a previous administration does something, you have to respect that, but you can also say: why are we doing this? That is why we are in the jams that we are in.

"We have some wonderful allies and we are going to keep it that way but we are going to be treated fairly also. And this administration our allegiance will be to the American workers and businesses."

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Mr Trump's press secretary Sean Spicer addressed the media this morning to address the confusion and whether the deal would move ahead or not.

"The President is unbelievably disappointed in the previous administration's deal that was made and how poorly it was crafted and the threat to national security it put the United States under," Mr Spicer said.

"I cannot underscore how disappointed he was in the deal that was made and how he thought it was just a horrible deal."

Mr Spicer earlier in the week said the deal would move forward, but it would be subject to "extreme vetting".

Within hours, senior officials said Mr Trump was unhappy with the deal and was still considering whether to move ahead with it.

Tough phone calls? 'Don't worry about it'

Sorry, this video has expired Trump has 'to be tough' on phone calls

Mr Spicer had described the tone of the discussions between Mr Turnbull and Mr Trump as "cordial".

But the Washington Post claimed Mr Trump abruptly ended the phone call with Mr Turnbull regarding the deal, calling the conversation "the worst by far" in a day that included calls with a clutch of world leaders.

Overnight Mr Trump said people should not be concerned about strongly-worded phone calls between world leaders like himself and Malcolm Turnbull.

"When you hear about the tough phone calls I'm having, don't worry about it. Just don't worry about it," he said.

"We're tough. We have to be tough. We're taken advantage of by virtually every nation in the world. It's not going to happen any more"

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In reaction to the Washington Post leak, House speaker Paul Ryan said Australians should not be concerned about the relationship between the two countries, while Senator John McCain called Australian ambassador Joe Hockey to express his support for the relationship with Australia.

"I asked Ambassador Hockey to convey to the people of Australia that their American brothers and sisters value our historic alliance, honour the sacrifice of the Australians who have served and are serving by our side, and remain committed to the safer, freer, and better world that Australia does far more than its fair share to protect and promote," Mr McCain said.

Americans have also apologised to Australians for Mr Trump's comments and rhetoric on the issue by posting on social media websites using the hashtag #bringthemhere.