US Saudi Deal in Nuclear Energy

President Trump has resumed his approach of big threats against some trading partners and generous pacts with others.

·         President Donald Trump has resumed his trade strategy of combining major trade deals with aggressive tariff threats against trading partners.

·         The administration is pursuing a broad nuclear cooperation agreement with Saudi Arabia, expected to generate billions of dollars in contracts for U.S. nuclear companies, particularly Westinghouse.

·         The proposed agreement could eventually allow Saudi Arabia to enrich uranium under U.S. supervision through a secure "black box" technology arrangement, without transferring sensitive nuclear technology.

·         The deal aims to strengthen U.S.–Saudi relations amid heightened tensions with Iran.

·         Critics warn the agreement could increase the risk of nuclear weapons proliferation, as Saudi Arabia would not be bound by the stricter non-proliferation conditions imposed on the UAE in its 2009 nuclear agreement.

·         President Trump announced that generic drug manufacturers must shift production to the United States within two years or face a 100% tariff from 2028, rising to 200% in 2029.

·         The administration says the measure is intended to boost domestic pharmaceutical manufacturing and reduce dependence on foreign production.

·         Analysts caution that higher tariffs on generic medicines could increase healthcare costs for American consumers.

·         The administration has also renewed tariff threats against Canada, reinforcing its strategy of using trade measures as leverage in negotiations.

·         The broader approach reflects Trump's continued policy of using "carrots and sticks"—offering economic incentives to strategic partners while imposing tariffs on countries viewed as acting unfairly.

·         Investor Warren Buffett's long-standing concerns about nuclear proliferation were highlighted in the discussion, with observers also noting emerging concerns over the risks posed by artificial intelligence (AI) alongside advanced nuclear technology.

 

[ABS News Service/23.07.2026]

Andrew here. For years, Warren Buffett has warned that the proliferation of nuclear weapons represents “the great problem of mankind.” The news that the U.S. has agreed to a broad nuclear agreement with Saudi Arabia is likely to cause consternation in Omaha. It should also prompt the rest of the world to consider the implications.

Buffett once said, “We can’t put the genie back in the bottle — but we can keep that genie contained.” The deal will likely mean billions of dollars for U.S. companies, but lawmakers in the U.S. and in Israel are raising questions.

One other issue to consider: Buffett recently said that A.I. may represent as big of a risk as nuclear weapons. Now think of the combined risk, in light of OpenAI’s admission on Tuesday that two of its models broke out of their “sandbox” and hacked another company to cheat on a test. More below.

New carrots and sticks

Trade is back on President Trump’s agenda, with new threats against Canada on billions of dollars’ worth of goods, and a major nuclear accord with Saudi Arabia.

The moves reflect a return to the Trump administration’s approach of carrots for favored allies and threats of stiff tariffs to intimidate others into acquiescence. But many of the administration’s moves carry big risks, experts say.

Example A: Saudi Arabia. The administration is expected to announce on Wednesday a broad accord that could let the Middle Eastern country eventually enrich its own uranium, according to The Times and others.

The long-discussed proposal — initially broached during the first Trump administration — is meant to tighten ties with the Saudis as the war with Iran has strained relations. But it’s also expected to give U.S. nuclear companies, including Westinghouse, billions of dollars worth of contracts.

More money could come if, after the conclusion of a two-year study, Washington allows Riyadh to enrich nuclear material on Saudi soil. Americans would build an enrichment facility for the Saudis under a “black box” arrangement that wouldn’t transfer sensitive technology to the Gulf state, according to The Wall Street Journal.

·         Yet skeptics worry about nuclear arms proliferation. Saudi Arabia wouldn’t be subject to the stronger nonproliferation terms that the U.S. required of the United Arab Emirates in a 2009 nuclear deal.

Example B: generic drugs. Makers of generic pharmaceuticals must onshore their manufacturing to the U.S. within two years, or face a 100 percent tariff starting in 2028, President Trump wrote on Truth Social on Tuesday. (It would go up to 200 percent in 2029.)

Analysts warn that the threat could push up treatment costs for millions of Americans, instead of fulfilling Trump’s promise of lower drug costs.

Andrew here. For years, Warren Buffett has warned that the proliferation of nuclear weapons represents “the great problem of mankind.” The news that the U.S. has agreed to a broad nuclear agreement with Saudi Arabia is likely to cause consternation in Omaha. It should also prompt the rest of the world to consider the implications.

Buffett once said, “We can’t put the genie back in the bottle — but we can keep that genie contained.” The deal will likely mean billions of dollars for U.S. companies, but lawmakers in the U.S. and in Israel are raising questions.

One other issue to consider: Buffett recently said that A.I. may represent as big of a risk as nuclear weapons. Now think of the combined risk, in light of OpenAI’s admission on Tuesday that two of its models broke out of their “sandbox” and hacked another company to cheat on a test. More below.

New carrots and sticks

Trade is back on President Trump’s agenda, with new threats against Canada on billions of dollars’ worth of goods, and a major nuclear accord with Saudi Arabia.

The moves reflect a return to the Trump administration’s approach of carrots for favored allies and threats of stiff tariffs to intimidate others into acquiescence. But many of the administration’s moves carry big risks, experts say.

Example A: Saudi Arabia. The administration is expected to announce on Wednesday a broad accord that could let the Middle Eastern country eventually enrich its own uranium, according to The Times and others.

The long-discussed proposal — initially broached during the first Trump administration — is meant to tighten ties with the Saudis as the war with Iran has strained relations. But it’s also expected to give U.S. nuclear companies, including Westinghouse, billions of dollars worth of contracts.

More money could come if, after the conclusion of a two-year study, Washington allows Riyadh to enrich nuclear material on Saudi soil. Americans would build an enrichment facility for the Saudis under a “black box” arrangement that wouldn’t transfer sensitive technology to the Gulf state, according to The Wall Street Journal.

·         Yet skeptics worry about nuclear arms proliferation. Saudi Arabia wouldn’t be subject to the stronger nonproliferation terms that the U.S. required of the United Arab Emirates in a 2009 nuclear deal.

Example B: generic drugs. Makers of generic pharmaceuticals must onshore their manufacturing to the U.S. within two years, or face a 100 percent tariff starting in 2028, President Trump wrote on Truth Social on Tuesday. (It would go up to 200 percent in 2029.)

Analysts warn that the threat could push up treatment costs for millions of Americans, instead of fulfilling Trump’s promise of lower drug costs.

Andrew here. For years, Warren Buffett has warned that the proliferation of nuclear weapons represents “the great problem of mankind.” The news that the U.S. has agreed to a broad nuclear agreement with Saudi Arabia is likely to cause consternation in Omaha. It should also prompt the rest of the world to consider the implications.

Buffett once said, “We can’t put the genie back in the bottle — but we can keep that genie contained.” The deal will likely mean billions of dollars for U.S. companies, but lawmakers in the U.S. and in Israel are raising questions.

One other issue to consider: Buffett recently said that A.I. may represent as big of a risk as nuclear weapons. Now think of the combined risk, in light of OpenAI’s admission on Tuesday that two of its models broke out of their “sandbox” and hacked another company to cheat on a test. More below.

New carrots and sticks

Trade is back on President Trump’s agenda, with new threats against Canada on billions of dollars’ worth of goods, and a major nuclear accord with Saudi Arabia.

The moves reflect a return to the Trump administration’s approach of carrots for favored allies and threats of stiff tariffs to intimidate others into acquiescence. But many of the administration’s moves carry big risks, experts say.

Example A: Saudi Arabia. The administration is expected to announce on Wednesday a broad accord that could let the Middle Eastern country eventually enrich its own uranium, according to The Times and others.

The long-discussed proposal — initially broached during the first Trump administration — is meant to tighten ties with the Saudis as the war with Iran has strained relations. But it’s also expected to give U.S. nuclear companies, including Westinghouse, billions of dollars worth of contracts.

More money could come if, after the conclusion of a two-year study, Washington allows Riyadh to enrich nuclear material on Saudi soil. Americans would build an enrichment facility for the Saudis under a “black box” arrangement that wouldn’t transfer sensitive technology to the Gulf state, according to The Wall Street Journal.

·         Yet skeptics worry about nuclear arms proliferation. Saudi Arabia wouldn’t be subject to the stronger nonproliferation terms that the U.S. required of the United Arab Emirates in a 2009 nuclear deal.

Example B: generic drugs. Makers of generic pharmaceuticals must onshore their manufacturing to the U.S. within two years, or face a 100 percent tariff starting in 2028, President Trump wrote on Truth Social on Tuesday. (It would go up to 200 percent in 2029.)

Analysts warn that the threat could push up treatment costs for millions of Americans, instead of fulfilling Trump’s promise of lower drug costs.