Trump Is Facing a Very Different North Korea

President Trump has signaled a renewed personal rapport with Kim Jong Un, announcing on August 17 via Truth Social that the U.S. will scale back joint military exercises with South Korea, citing his "very good relationship" with the North Korean leader and calling him "unthreatening and respectful." The move marks a departure in Washington's posture toward Pyongyang and comes amid recent media comments suggesting the two leaders are in communication. The scale-back affects the long-standing U.S.-South Korea joint drill schedule, a cornerstone of the alliance's deterrence posture. Markets and allies will watch whether the reduction is reciprocated by Pyongyang and whether it reshapes security coordination with Seoul.