Summary

Panama’s President José Raúl Mulino condemned the US for spreading a “falsehood” about the Panama Canal, after the State Department claimed Panama had agreed to waive tolls for US government ships.

The dispute follows Trump’s assertion that the US should “take back” the canal, citing Chinese influence as a threat.

In response, Panama withdrew from China’s Belt and Road Initiative.

China criticized US interference, while analysts see military action as unlikely but not impossible given past interventions in the region.