Donald Trump has begun his second term as president by ramping up pressure on Panama – threatening to “take back” the Panama Canal and accusing the country of ceding control of the strategically critical waterway to a US rival: China.

By Frankie Mills Panama has strongly rejected US claims about securing free passage for government vessels through the Panama Canal, whilst announcing its withdrawal from China's Belt and Road Initiative amidst growing US pressure over alleged Chinese influence in the region.

The U.S. Department of State said on Wednesday American government vessels can now transit the Panama Canal without charge fees. "The government of Panama has agreed to no longer charge fees for U.S. government vessels to transit the Panama Canal," the department said in a post on X.

By Elida Moreno PANAMA CITY (Reuters) -Panama President Jose Raul Mulino said on Thursday the U.S. was spreading "lies and falsehoods" after the State Department claimed U.S. government vessels would be able to pass through the Panama Canal without paying.