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    Pentagon chief says US could ‘revive’ Panama bases

    The US defence secretary has floated the idea of the country’s troops returning to Panama to “secure” its strategically vital canal, a suggestion quickly shot down by the Central American country’s government.Pete Hegseth suggested during a visit to Panama that “by invitation” the US could “revive” military bases or naval air stations and rotate deployments of its troops to an isthmus the US invaded 35 years ago.He also said his country was seeking free passage through the canal for its navy ships – which Donald Trump had said were “severely overcharged and not treated fairly in any way, shape or form”.Trump, since coming to power in January, has repeatedly claimed that China has too much influence over the canal, which handles about 40% of US container traffic and 5% of world trade.His administration has vowed to “take back” control of the strategic waterway that the US funded, built and controlled until 1999.Hegseth suggested on Wednesday the former US military bases that dot Panama could be used again to host American troops.He said a deal signed with Panama this week was an “opportunity to revive, whether it’s the military base, naval air station, locations where US troops can work with Panamanian troops to enhance capabilities and cooperate in a rotational way”.While Hegseth cited the possibility of joint exercises, the mention of a rotational force was likely to raise the hackles of Panamanians, for whom sole ownership of the canal is a source of national pride.The US has long participated in military exercises in Panama. However, a longer-term rotational force – such as the force the USmaintains in Darwin, Australia – is politically toxic for Panama’s centre-right leader, José Raúl Mulino.His government quickly slapped down the idea. “Panama made clear, through President Mulino, that we cannot accept military bases or defence sites,” said Panama’s security minister, Frank Abrego, in a joint public appearance with Hegseth.Hegseth also said the US was seeking an agreement under which its warships could pass through the canal “first, and free”.Jose Ramón Icaza, Panama’s minister for canal affairs, said: “We will seek a mechanism by which warships and auxiliary ships can have a compensation system for services, that is, a way to make them cost-neutral but not free.”The independent Panama Canal Authority (PCA) that manages the waterway said on Wednesday that it was seeking a “cost-neutral scheme” to compensate services rendered in security matters for warship tolls.Under current treaties, the canal is open to all countries and vessels must pay the same rates according to their capacity and cargo, regardless of their country of origin or destination.The PCA said the US recognised Panamanian sovereignty over the waterway, although Hegseth did not mention it in the news conference.The Pentagon chief’s two-day visit has been peppered with comments about China and its influence in Latin America. He said the US was not looking for war with China but would counter Beijing’s “threats” to the region.“We do not seek war with China. And war with China is certainly not inevitable. We do not seek it in any form,” Hegseth said. “But together, we must prevent war by robustly and vigorously deterring China’s threats in this hemisphere,” the former Fox News anchor said.China hit back after Hegseth’s comments, saying Washington officials “maliciously attacked China … exposing the US’s bullying nature”.Trump has zeroed in on the role of a Hong Kong company that has operated ports at either end of the canal linking the Atlantic and Pacific Oceans for decades.Hegseth asserted that China-based companies were also capturing Latin American land and infrastructure in strategic sectors, such as energy and telecommunications, and that China had too large a military presence in the hemisphere.“Make no mistake, Beijing is investing and operating in this region for military advantage and unfair economic gain,” he said.Under pressure from the White House, Panama has accused the Hong Kong-backed Panama Ports Company of failing to meet its contractual obligations and pushed for it to pull out of the country.The company rejected an audit on Wednesday that suggested it had failed to pay $1.2bn due under its concession.The ports’ parent company, CK Hutchison, announced last month a deal to offload 43 ports in 23 countries – including its two on the Panama canal – to a consortium led by the US asset manager BlackRock for $19bn in cash. A furious Beijing has since announced an antitrust review of the deal.The US invaded Panama in 1989 to oust the dictator Manuel Noriega, killing more than 500 Panamanians and razing parts of the capital. More

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    China fires back after Pete Hegseth calls country a threat to Panama canal

    US secretary of defense Pete Hegseth said on Tuesday that the Panama canal faces ongoing threats from China but that together the United States and Panama will keep it secure.Hegseth’s remarks triggered a fiery response from the Chinese government, which said: “Who represents the real threat to the Canal? People will make their own judgement.”Speaking at a ribbon cutting for a new US-financed dock at the Vasco Nuñez de Balboa Naval Base after a meeting with Panama president, José Raúl Mulino, Hegseth said the US will not allow China or any other country to threaten the canal’s operation.“To this end, the United States and Panama have done more in recent weeks to strengthen our defense and security cooperation than we have in decades,” he said.Hegseth alluded to ports at either end of the canal that are controlled by a Hong Kong consortium, which is in the process of selling its controlling stake to another consortium including BlackRock Inc.“China-based companies continue to control critical infrastructure in the canal area,” Hegseth said. “That gives China the potential to conduct surveillance activities across Panama. This makes Panama and the United States less secure, less prosperous and less sovereign. And as President Donald Trump has pointed out, that situation is not acceptable.”Hegseth met with Mulino for two hours on Tuesday morning before heading to the naval base that previously had been the US Rodman naval station.On the way, Hegseth posted a photo on Twitter/X of the two men laughing and said it was an honor speaking with Mulino. “You and your country’s hard work is making a difference. Increased security cooperation will make both our nations safer, stronger and more prosperous,” he wrote.The visit comes amid tensions over Donald Trump’s repeated assertions that the US is being overcharged to use the Panama canal and that China has influence over its operations – allegations that Panama has denied.Shortly after the meeting, the Chinese embassy in Panama slammed the US government in a statement on X, saying the US has used “blackmail” to further its own interests and that who Panama carries out business with is a “sovereign decision of Panama … and something the U.S. doesn’t have the right to interfere in”.“The US has carried out a sensationalistic campaign about the ‘theoretical Chinese threat’ in an attempt to sabotage Chinese-Panamanian cooperation, which is all just rooted in the United State’s own geopolitical interests,” the embassy wrote.After Hegseth and Mulino spoke by phone in February, the US state department said that an agreement had been reached to not charge US warships to pass through the canal. Mulino publicly denied there was any such deal.The US president has gone so far as to suggest the US never should have turned the canal over to Panama and that maybe that it should take the canal back.The China concern was provoked by the Hong Kong consortium holding a 25-year lease on ports at either end of the canal. The Panamanian government announced that lease was being audited and late on Monday concluded that there were irregularities.The Hong Kong consortium, however, has already announced that CK Hutchison would be selling its controlling stake in the ports to a consortium including BlackRock Inc, in effect putting the ports under US control once the sale is complete.Secretary of state Marco Rubio told Mulino during a visit in February that Trump believes China’s presence in the canal area may violate a treaty that led the US to turn the waterway over to Panama in 1999. That treaty calls for the permanent neutrality of the US-built canal.Mulino has denied that China has any influence in the operations of the canal. In February, he expressed frustration at the persistence of the narrative. “We aren’t going to speak about what is not reality, but rather those issues that interest both countries,” he said.The US built the canal in the early 1900s as it looked for ways to facilitate the transit of commercial and military vessels between its coasts. Washington relinquished control of the waterway to Panama on 31 December 1999, under a treaty signed in 1977 by Jimmy Carter.“I want to be very clear, China did not build this canal,” Hegseth said on Tuesday. “China does not operate this canal and China will not weaponize this canal. Together with Panama in the lead, we will keep the canal secure and available for all nations through the deterrent power of the strongest, most effective and most lethal fighting force in the world.” More

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    Trump threatens additional 50% tariffs on China over retaliatory levies

    Donald Trump has threatened to impose an additional 50% tariff on imports from China on Wednesday unless the country rescinds its retaliatory tariffs on the United States by Tuesday.The news comes on the third day of catastrophic market falls around the globe since Trump announced his trade war last Wednesday with tariffs on the US’s trading partners.As part of that move the White House announced it would impose a 34% tariff on Chinese imports. In response, Beijing announced a 34% tariff on US imports.In a statement on Truth Social on Monday morning, the US president said that China enacted the retaliatory tariffs despite his “warning that any country that Retaliates against the U.S. by issuing additional Tariffs” would be “immediately met with new and substantially higher Tariffs, over and above those initially set”.“If China does not withdraw its 34% increase above their already long term trading abuses by tomorrow, April 8th, 2025, the United States will impose ADDITIONAL Tariffs on China of 50%, effective April 9th,” Trump wrote.“Additionally, all talks with China concerning their requested meetings with us will be terminated!” he added. “Negotiations with other countries, which have also requested meetings, will begin taking place immediately.”China’s US embassy said on Monday it would not cave to pressure or threats over the additional 50% tariffs. “We have stressed more than once that pressuring or threatening China is not a right way to engage with us. China will firmly safeguard its legitimate rights and interests,” Liu Pengyu, an embassy spokesman, told Agence France-Presse.A senior White House official told ABC News that the increased tariffs on China would be on top of the 34% reciprocal tariff Trump announced last week and the 20% already in place.Trump’s new ultimatum to China marked the latest escalation from the White House and came as US stocks swung in and out of the red on Monday morning as a report circulated that Trump was going to pause the implementation of his sweeping tariffs for 90 days, but then was quickly dismissed by the White House as “fake news”.Not long after Trump threatened China with additional tariffs on Monday morning, he participated in a White House visit from the Los Angeles Dodgers to celebrate their World Series title. More

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    Netanyahu discusses Gaza and tariffs with Trump at White House meeting

    The Israeli prime minister, Benjamin Netanyahu, met with Donald Trump on Monday for the second time since the US president’s return to office, marking the first effort by a foreign leader to negotiate a deal after Trump announced sweeping tariffs last week.Speaking alongside Trump in the Oval Office, Netanyahu said Israel would eliminate the trade deficit with the US. “We intend to do it very quickly,” he told reporters, adding that he believed Israel could “serve as a model for many countries who ought to do the same”.Trump said the pair had a “great discussion” but did not indicate whether he would reduce the tariffs on Israeli goods. “Maybe not,” he said. “Don’t forget we help Israel a lot. We give Israel $4bn a year. That’s a lot.”Trump denied reports that he was considering a 90-day pause on his tariff rollout. “We’re not looking at that,” he told reporters. “We have many, many countries that are coming to negotiate deals with us, and there are going to be fair deals.”Trump also announced that the US and Iran were beginning talks on Tehran’s nuclear program. “We’re having direct talks with Iran, and they’ve started. It’ll go on Saturday. We have a very big meeting, and we’ll see what can happen,” he told reporters. He warned Tehran would be “in great danger” if the talks collapse.Netanyahu expressed a cautious support for US-Iran talks but insisted Tehran must not have nuclear weapons. “If it can be done diplomatically … I think that would be a good thing,” he said. “But whatever happens, we must make sure that Iran does not have nuclear weapons.”The comments came in the Oval Office after Trump and Netanyahu held private talks. The White House canceled a joint press conference that was scheduled to take place afterward, without offering an immediate explanation.Netanyahu, announcing the last-minute meeting on Sunday, said he was visiting at the invitation of Trump to speak about efforts to release Israeli hostages from Gaza, as well as new US tariffs.The meeting came after the Trump administration announced his trade war last Wednesday with tariffs on the US’s trading partners, including a 17% tariff on Israeli goods.The US is Israel’s closest ally and largest single trading partner. Israel had hoped to avoid the new tariffs by moving to cancel its remaining tariffs on US imports a day before Trump’s announcement.Before his meeting with Trump, Netanyahu met with the US special envoy to the Middle East, Steve Witkoff. He also met with the US commerce secretary, Howard Lutnick, and the US trade representative Jamieson Greer on Sunday night in Washington. The Israeli government described the latter meeting as “warm, friendly and productive”.During Netanyahu’s last visit in February, Trump shocked the world by proposing to take over the Gaza Strip, removing more than 2 million Palestinians and redeveloping the occupied territory as a “Riviera of the Middle East”, in effect endorsing the ethnic cleansing of the people of Gaza.Since then, Israel has resumed its bombardment in Gaza, collapsing nearly two months of ceasefire with Hamas that had been brokered by the US, Egypt and Qatar.Nearly 1,400 Palestinians have been killed in the renewed Israeli operations in Gaza, according to Palestinian health officials, taking the total death toll since the start of the war to more than 50,000. Israel has also halted all supplies of food, fuel and humanitarian aid into Gaza.Netanyahu’s visit to the US comes as he faces pressure at home to return to ceasefire negotiations and secure the release of the remaining hostages in Gaza.Netanyahu told reporters on Monday that he and Trump had discussed the US leader’s “bold” vision to move Palestinians from Gaza, and that he is working with the US on another deal to secure the release of additional hostages. “We’re working now on another deal, that we hope will succeed,” he said.Netanyahu also claimed that Israel is committed to “enabling the people of Gaza to freely make a choice to go wherever they want”. Last week, he said Israel was “seizing territory” and intended to “divide up” the Gaza Strip by building a new security corridor, inflaming fears that Israel intends to take permanent control of the strip when the war ends.Netanyahu arrived in Washington on Sunday night from Hungary, after a four-day official visit that marked the Israeli leader’s first visit to European soil since the international criminal court (ICC) issued an arrest warrant for him over allegations of war crimes in Gaza.Hungary’s prime minister, Viktor Orbán, made it clear he would defy the court to host Netanyahu, and announced that he would take Hungary out of the ICC because it had become “political”. The US is not a member of the court. More

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    Labour: changes to EV rules will have ‘negligible’ impact on UK emissions

    Labour’s changes to electric vehicle (EV) rules in response to Donald Trump’s tariffs will have a negligible impact on emissions, the transport secretary has said.Keir Starmer has confirmed plans to boost manufacturers, including reinstating the 2030 ban on the sale of new petrol and diesel cars.But regulations around manufacturing targets on electric cars and vans will also be altered, to help companies in the transition, and new hybrids will be on the market for a further five years.Heidi Alexander said the taxes on imports announced by the US president last week, which spurred reciprocal action by some affected countries, “are bad news for the global economy, because it’s bad for global demand, it’s bad for prices and it’s bad for consumers”.Speaking on BBC Breakfast about the impact on carbon emissions of the government’s changes to electric vehicle rules, she said: “The changes we are making have been very carefully calibrated so as not to have a big impact upon the carbon emissions savings that are baked into this policy. In fact, the impact on carbon emissions as a result of these changes is negligible.”Under the measures, luxury supercar companies such as Aston Martin and McLaren will be allowed to keep producing petrol cars beyond 2030 because they manufacture only a small number of vehicles a year. New hybrids and plug-in hybrid cars will be allowed to be sold until 2035. Petrol and diesel vans will be able to be sold until 2035, as well as all hybrid models.Alexander said the government had “struck the right balance” between protecting British businesses and cutting carbon emissions.Asked whether the retention of a 2030 target for the phasing out of all pure petrol and diesel cars would restrict free markets at a time when the car industry was on its knees, she said: “It is an opportunity for the car industry to remain at the cutting edge of the transition to EVs, but it’s right that we’re pragmatic.“It’s right that we are looking at how we can be flexible in the way in which car manufacturers make this transition, because we want cheaper EVs to be available for consumers. We want people to be able to benefit from those lower running costs as well.“And so it’s important that, as a government, we do everything that we can – not only to support British businesses and manufacturing to grow the economy, but also to cut those carbon emissions, and I think we’ve struck the right balance in the package that we’re announcing today.”Asked on BBC Radio 4’s Today programme if Starmer was prepared to use the relationship he has built with Trump to ask him to change course, she said: “Obviously when the prime minister has discussions internationally with allies he will be honest about what is in the best interests of the British people.”Challenged that the EV measures were planned before the announcement of the tariffs and were a tweak to policy rather than dramatic change, she told Today: “These are significant changes to the car industry. You are right to say we started the consultation on Christmas Eve and that we closed the consultation in the middle of February.”skip past newsletter promotionafter newsletter promotionShe said Trump’s imposition of tariffs meant the UK government had to look at its EV plans with “renewed urgency”.The Green party MP Siân Berry said: “The government is wrong to apply the brakes on the sale of EV cars. This is just the latest in a series of boosts the Labour government has given fossil fuel industries. We’ve also seen the green light being given to airport expansion and a new road tunnel under the Thames. This suggests Labour is weakening its climate commitments, and its health-related policy goals because all these moves will have a detrimental impact on air quality.“Slowing down the move away from fossil-fuelled transport makes no economic sense either, since green sectors of the economy are growing three times faster than the overall UK economy.”Colin Walker, the head of transport at the Energy and Climate Intelligence Unit, said: “In weakening the mandate elsewhere by extending flexibilities and allowing the sale of standard hybrids between 2030 and 2035, the government risks reducing the competition it has stimulated between manufacturers, meaning prices for families seeking an EV might not fall as fast, and sales could slow.“The growth of the secondhand EV market, where most of us buy our cars, would in turn be stunted, leaving millions of families stuck in petrol and hybrid cars paying a petrol premium of hundreds, and even thousands, of pounds a year.” More