The Latest Breaking News from the Panama Canal

US President Donald Trump's bid to take back control of the Panama Canal has put his counterpart Jose Raul Mulino in a difficult position and revived fears in the Central American country that US military bases will return.

Panama's opposition leaders are accusing the U.S. of a "camouflaged invasion" after Trump deployed troops to former military bases near the Panama Canal.

U.S. Secretary of Defense Pete Hegseth has again put China at the center of U.S. priorities in the western hemisphere, one day after calling the world power a threat to the Panama Canal

The United States will not allow China to jeopardize the operations of the Panama Canal, US Defense Secretary Pete Hegseth warned during a visit to the Central American nation on Tuesday.

Hegseth's visit comes amid tensions over US President Donald Trump's repeated assertions that the United States is being overcharged to use the Panama Canal and that China has influence over its operations.

Report comes as US uses claims of Chinese meddling to push for control over strategic waterway.

The Hong Kong firm in charge of two ports at either end of the Panama Canal -- which sparked US President Donald Trump's threats to seize the waterway -- has flouted the terms of its contract, according to Panamanian audit results released Monday.

Beijing’s displeasure over conglomerate’s plans highlights tightening business environment in Hong Kong.

The Panama Canal is one of the most important waterways in the world, with about 7% of global trade passing through. It also relies heavily on rainfall. Without enough freshwater flowing in, the canal’s locks can’t raise and lower ships traveling between the Atlantic and Pacific oceans. Droughts mean fewer…