French Foreign Minister Jean-Yves Le Drian said, on Saturday, that Australia's decision to cancel the purchase of French submarines and replace them with US nuclear-powered submarines "will have an impact on the future of NATO."

On Friday, France has taken the unprecedented move of recalling its ambassadors from the US and Australia, as reported by AFP.

"The fact that, for the first time in the history of relations between the United States and France, we are recalling our ambassador for consultations is a grave political act that shows the intensity of the crisis today between our two countries and also with Australia," Le Drian told France 2 television.

Tensions between France and its two allies are simmering, as a previous $50 billion deal described by the French as the "contract of the century" was suddenly scrapped on Wednesday in favor of a US one. 

The new deal, which involves selling Australia a set of nuclear-powered submarines, aims at strengthening the Asian island’s offensive capabilities against China under the AUKUS arrangement involving the US, UK, and Australia. 

In 2016, Australia signed a deal with France stipulating that the EU country will provide it with 12 diesel-powered submarines to replace its old fleet. The deal has been reconfirmed only two weeks ago, which is why the US move has truly surprised Macron’s administration.