Macro Finance
Alliance Tested as Trump Pulls Out of South Korea Drill
Bloomberg Markets·August 23, 2026·1 min read
The US and South Korea sharply curtailed their annual military exercises after President Donald Trump ordered them scaled back, surprising Seoul as North Korea expands its nuclear and missile capabilities and deepens military ties with Russia. The move comes as the US shifts an aircraft carrier and other military resources from the Indo-Pacific toward the Middle East, raising questions about Washington's ability to sustain its security commitments in Asia.
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