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U.S. threatens to "take back" Panama Canal, sparking international crisis

The U.S. President threatened to retake the Panama Canal, falsely claiming China operates it. Panama filed a complaint with the United Nations citing threats against territorial integrity. The crisis led to controversial security agreements allowing U.S. troops on Panamanian territory.

What We Know

- President stated "we're taking it back" in inaugural address

- Falsely claimed "China is operating the Panama Canal"

- Panama filed formal UN complaint citing Article 2(4) of UN Charter

- China does not operate the canal - a Hong Kong company operates terminals, like many international companies

- Security agreements signed allowing U.S. troop exercises for three years

- Hutchison Holdings agreed to sell port terminals to BlackRock-led consortium

- Panama president declared crisis over in January 2026

What We Don't Know

- Whether security agreements were signed under coercion

- Long-term implications for Panama's sovereignty

- Status of port terminal sale

Common Misstatements

China does not "operate" the Panama Canal. Panama has full sovereignty. A Hong Kong company operates port terminals, as do many international companies.

Sources

China and the U.S. clash at the U.N. over the Panama Canal

NPR · 2025-08-12 major

"Panama's President stressed the neutrality of the canal and his country's ownership at UN Security Council."

Trump reiterates threat to retake Panama Canal

CNN · 2025-02-02 major

"Trump displayed what was described as an "imperial fixation on Panama.""

Adverse Consequences of US Threats to Retake the Panama Canal

Baker Institute · 2025-02-10 think-tank

"Panama filed formal complaint to United Nations citing Article 2(4) of UN Charter."

Panama and China push back against Trump's canal threats

Al Jazeera · 2025-01-22 wire

"Panama's President Mulino pushed back, saying the Panama Canal "was not a gift" from the US."

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