Panama’s President José Raúl Mulino announced that the country will withdraw from China’s Belt and Road Initiative (BRI), signaling a shift in regional geopolitics and highlighting rising competition between the U.S. and China in Latin America. Panama’s departure, the first by a Latin American nation, undermines China’s influence, particularly regarding the Panama Canal—a crucial trade route for the U.S. Former President Trump had warned about China’s involvement in the canal, calling it a threat to U.S. interests. While the U.S. focuses on diplomatic measures, Panama’s decision could inspire other Latin American nations to reconsider their relations with China, potentially altering the region’s geopolitical balance.