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.

In response to pressure from the Trump administration, Panama has withdrawn from China’s Belt and Road Initiative. Eric Olander, co-founder of the China-Global South Project, says the U.S. president will likely feel emboldened to seek similar leverage from the more than 100 other countries that are still part of Beijing's infrastructure project.

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.

Newly inaugurated U.S. President Donald Trump is pushing to "take back" the Panama Canal, the world's second busiest interoceanic waterway.

Panama's foreign office will share details on the new date once it has been coordinated, the government said. Mulino has accused the U.S. of spreading "lies and falsehoods" after its government claimed its vessels would be able to pass through the Panama Canal without paying.

Panama President José Raúl Mulino has rejected the U.S. State Department’s claim that his country had reached a deal allowing U.S. warships to transit the Panama Canal for free