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Panama and US in escalating war of words over canal

Feb 7, 2025, 6:17am EST
North America
Panama’s President Jose Raul Mulino at a press conference in Panama City
Presidencia de Panama/Handout via Reuters
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Panama’s president is set to speak with his US counterpart Donald Trump today after accusing Washington of a “simply intolerable falsehood” in an escalating dispute over the Panama Canal.

The US said it had negotiated for American government vessels to traverse the waterway for free, a claim swiftly denied by canal authorities.

The row underscored questions over concessions the Trump administration claimed to have won after pressuring neighbors and allies: The White House has trumpeted drugs and immigration efforts being made by Canada and Mexico to win 30-day tariff reprieves, but analysts said both countries were largely going ahead with previously announced plans.

A chart showing tons of cargo crossing the Panama Canal by country of origin
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