Trump Says He Isn’t Hosting a Birthday Parade. Local Leaders Disagree.

“We’ve moved a lot of troops to Panama, and, uh, filled up some areas that we used to have, we didn’t have any longer, but we have them now, and I think it’s in very good control, right?” Trump said, turning to Hegseth, who replied, “Yes, Sir.”

The exchange seems to indicate that Trump has moved to control the canal and is working with Panama’s president, despite Trump previously antagonizing the country by expressing the desire to retake it. Hegseth’s visit to Panama earlier this week seemed to calm down tensions between the two countries, with Hegseth acknowledging Panama’s sovereignty over the canal.

But Trump asked the military last month to draw up plans for retaking the canal, meaning that he prefers to have that option on the table. Panama has taken steps to try to appease Trump, making a deal to reimburse U.S. ships for any transit fees for going through the canal, signing a security cooperation agreement, and agreeing to allow U.S. troops to resume jungle warfare training.