Stay updated with the latest - Click here to follow us on Instagram

Panama’s President José Raúl Mulino on Thursday accused US of spreading a “quite simply intolerable falsehood” about the Panama Canal, as tensions between the two countries escalate over Donald Trump’s claim that the US should “take back” the waterway.
The US State Department asserted on Wednesday that Panama had agreed to stop charging US government vessels canal tolls, allegedly saving Washington millions. However, the Panama Canal Authority denied making any changes to its fees.
“I am extremely surprised by yesterday’s State Department announcement because they are making important statements … based on a falsehood, and this is intolerable, quite simply intolerable,” Mulino said on Thursday. He later announced plans to speak with Trump by phone on Friday.
Mulino said he asked his ambassador in Washington to take “firm steps” to reject the claims made by the Trump administration.
The dispute follows Trump’s repeated claim that the US “foolishly” returned the canal to Panama in 1999, only for China to take control. “And we’re going to take it back, or something very powerful is going to happen,” Trump warned.
US Secretary of State Marco Rubio echoed Trump’s concerns during a visit to Panama, calling China’s influence over the canal “unacceptable” and warning that the US might have to “take measures necessary to protect its rights.” He later defended the US stance, stating, “The United States has a treaty obligation to protect the Panama Canal if it comes under attack … I find it absurd that we would have to pay fees to transit a zone that we are obligated to protect in a time of conflict.”
While military action to reclaim the canal is considered unlikely, past US interventions—such as George HW Bush’s 1989 invasion to remove Panama’s leader Manuel Noriega—suggest it is not impossible.
Trump’s rhetoric appears aimed at countering China’s growing economic presence in Latin America. His strategy may be working, as Mulino announced Thursday that Panama was withdrawing from China’s Belt and Road Initiative, a massive infrastructure and investment program aimed at expanding Beijing’s global influence.
China, meanwhile, condemned the US position, with Foreign Ministry spokesperson Lin Jian accusing Washington of making “irresponsible remarks” and “intentionally distorting, attacking, and mischaracterizing” Panama’s cooperation with Beijing.
Stay updated with the latest - Click here to follow us on Instagram