President Donald Trump used his inaugural speech on Monday to attack a U.S. ally, falsely claiming that China now controls the Panama Canal — it is in fact managed by an independent agency of the Panamanian government — and appearing to threaten war to seize it back.
Citing the U.S. role in building the canal, Trump reiterated right-wing grievances against the 1978 treaty that resulted in it being transferred from American to Panamanian control, describing it as a "foolish gift that should never have been made." He went on to baselessly assert that Panama had reneged on its end of the bargain and that its "promise to us has been broken."
