Morning Edition · Monday, August 17, 2026Published at 1:13 AM EDT · New York
The president tied the cut to costs and to Seoul's refusal to join actions against Iran, and South Korea's defence ministry confirmed the Ulchi Freedom Shield exercises started on Monday as planned.
President Donald Trump instructed the Pentagon on Sunday to substantially reduce the annual joint military exercises with South Korea, hours before ten days of drills were due to begin. He gave two reasons. The exercises cost too much, and Seoul declined to take part in actions against Iran.
In a social media post he added that the drills send a signal that is "totally inappropriate and hostile" toward North Korea, which he said has been unthreatening and respectful during his time in office. Euronews noted that he made a similar argument in 2018 after meeting Kim Jong Un in Singapore, when he called the exercises provocative.
The order did not stop the exercises. South Korea's defence ministry confirmed that Ulchi Freedom Shield began on Monday as planned, according to reporting relayed by the Russian state agency TASS from Korean media. Neither government has said which components will be reduced or when.
The sequence matters more than the announcement. Washington linked an Asian alliance commitment directly to a partner's conduct in a Middle Eastern war, which converts a standing treaty obligation into something conditional on unrelated cooperation. For Seoul, and for Tokyo watching it, the message is that the guarantee has a price that can be reset without notice.
Part of a tracked trend
Middle Powers Build Security Blocs Outside Washington
States that once relied on American guarantees keep forming their own mutual defense arrangements, redirecting arms procurement away from Western suppliers and creating overlapping commitments that make regional crises harder to contain.
Pyongyang gains a reduction in allied readiness it did not have to negotiate for, South Korean and Japanese defence manufacturers gain from the budget increases a less certain guarantee produces, and Trump gains a cost-saving claim and a bargaining position with Seoul over Iran.
The order is verified, but Ulchi Freedom Shield began on schedule and runs to 27 August, and neither government has identified a single component that will actually be cut, so the announcement and its effect are separate questions.
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What this means
Alliance guarantees function as a subsidy to allied defence budgets, because a credible American commitment lets partners spend less than deterrence would otherwise require. Removing the subsidy transfers the cost to national budgets. South Korea and Japan already run large defence procurement programmes, and a visible weakening of the American commitment accelerates them, which supports domestic defence manufacturers and adds to sovereign borrowing in both countries. The won and Korean sovereign debt carry the immediate risk premium.
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