Defense Secretary Pete Hegseth said the United States is supporting the Panamanians’ efforts to push China out of the Panama Canal.

Hegseth met with Panamanian President José Raúl Mulino on Tuesday and later spoke at a ribbon-cutting event for a new U.S.-financed dock at the Vasco Nuñez de Balboa Naval Base.

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His trip comes as the U.S. is engaged in a trade war with Beijing and has accused the Panamanians of allowing Beijing to take over control of the canal, which they deny.

“I want to be very clear: China did not build this canal,” Hegseth said 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.”

Ports at both ends of the canal are controlled by a Hong Kong consortium, CK Hutchison Holding, that is in the process of selling its controlling stake to another consortium led by BlackRock, the world’s largest asset management company. 

Panamanian Comptroller General Anel Flores threw the deal into limbo on Monday, however, when he accused CK Hutchison of failing to obtain necessary clearances for two key Panama Canal ports and of owing hundreds of millions of dollars in unpaid fees.

“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.”

President Donald Trump has gone so far as to suggest the U.S. never should have given up the canal to Panama and that the U.S. should take it back.

He will implement a 104% tariff on China on Wednesday morning after Beijing missed a deadline to drop its own barrier taxes on U.S. goods.

TRUMP SLAPS 104% TARIFF ON CHINA AFTER BEIJING VOWS TO ‘FIGHT’

“The U.S. threat to escalate tariffs on China is a mistake on top of a mistake and once again exposes the blackmailing nature of the U.S. China will never accept this. If the U.S. insists on its own way, China will fight to the end,” China’s Ministry of Commerce said in a statement on Tuesday.

White House officials said Monday that nearly 60 trading partners had approached the White House to enter new trade negotiations following the “Liberation Day” announcement.