The prime minister has revealed more details of his talks with the US president, while backing Australia's US Ambassador Kevin Rudd after his unscripted exchange with Mr Trump across the table at the White House stole the limelight.
"He's a friend of Australia," Mr Albanese said of Mr Trump during an interview on Nine's Today show on Wednesday.
"It was a terrific meeting; it couldn't have gone better."
During the post-meeting press conference on Tuesday, Mr Trump was asked about Dr Rudd once calling him a "traitor to the West".
When Mr Albanese pointed out that Dr Rudd was sitting across the table, Mr Trump said "I don't like you either and I probably never will", prompting laughter from the Australian delegation.
Later, the ambassador reportedly apologised to Mr Trump, who said "all is forgiven".
"It was pretty light-hearted," Mr Albanese told Nine, "and President Trump said, you know, all is forgiven - he volunteered that".
The coalition has been calling for Dr Rudd to be removed as ambassador for the sake of the US-Australia alliance.
Deputy Opposition Leader Ted O'Brien told Sky News "alarm bells" were ringing because Mr Trump wasn't aware that Dr Rudd was the Australian ambassador.
But the prime minister said the "Australia-US relationship is in great shape".
"I got a very warm invitation from him, and things are good and that is in Australia's national interest," Mr Albanese told Seven's Today show.
He also revealed he gifted Melania Trump some jewellery and the president a small model of a submarine - a subtle reference to Australia's keen interest in acquiring nuclear submarines under the AUKUS trilateral security pact.
The meeting could lay the groundwork for the president to pull additional levers to accelerate Australia's acquisition of nuclear-powered submarines, the first of which it plans to buy from the US early next decade.
Mr Trump gave his strongest commitment to date to the $368 billion project, ending months of uncertainty over whether he supported the deal.
Asked if the submarines would be delivered to Australia, he replied: "Oh no, they're getting them".
"We're just going full steam ahead building," he told reporters in the White House Cabinet Room.
Mr Trump suggested the US might fast-track delivery of the vessels, but wouldn't give a timeline.
But experts question whether the timeline of the AUKUS deal is viable, given the US is struggling to meet its targets for submarine production.
Perth USAsia Centre chief executive Gordon Flake said the Trump administration needed to do more to shore up its defence industrial base, but was optimistic about Australia receiving its submarines on time.
As part of the White House meeting, Mr Trump and Mr Albanese signed a historic $13 billion agreement on rare earth and critical minerals processing, which is being seen as an attempt by the US to counter China's hold on the market.
The prime minister and Dr Rudd also met with members of Congress, including Democrat House Minority Leader Hakeem Jeffries.
Mr Albanese's last Washington event was a meeting with top executives from BHP and business leaders to celebrate the mining giant's 140th anniversary and advocate for Australia's resources sector.
