The D Brief: Hegseth softens Panama talk; Trump’s budget flip-flop; Arms in space; EUCOM’s plea; And a bit more.

SecDef Hegseth vowed to “take back” the Panama Canal from Chinese influence in remarks Tuesday that Reuters reported “appeared fine-tuned, talking tough but offering some assurances to Panamanians still unsettled by Trump's threats to reclaim the canal.” “China did not build this canal,” U.S. Defense Secretary Pete Hegseth said at a pier in Panama City. “China does not operate this canal and China will not weaponize this canal. Together with Panama