U.S. Secretary of State Marco Rubio delivered a stern warning to Panamanian officials during his first international trip since being sworn in, urging them to curb Chinese influence over the Panama Canal or face potential retaliatory actions from the United States.
The high-stakes meeting with Panamanian President José Raúl Mulino and Foreign Minister Javier Martínez-Acha underscores growing tensions over China’s expanding presence in the strategic waterway, which handles approximately 5% of global maritime trade.
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The Panama Canal, a critical artery for international shipping, has become a focal point of geopolitical competition between the U.S. and China. Since regaining control of the canal from the U.S. in 1999, Panama has increasingly partnered with Chinese companies, including a Hong Kong-based firm that operates ports on both ends of the canal. President Donald Trump has repeatedly expressed concerns about China’s influence in the region, even suggesting the possibility of military action to regain control of the canal if necessary.
Rubio’s visit to Panama marks the latest escalation in the Trump administration’s efforts to counter Chinese influence in Latin America and protect U.S. interests in the canal. The trip also highlights the administration’s broader strategy of challenging China’s Belt and Road Initiative (BRI), a global infrastructure project that has expanded Beijing’s economic and political reach.
Trump has intensified his demands regarding the Panama Canal. He has criticized Panama for charging U.S. ships higher rates than other nations and expressed frustration over the involvement of Chinese companies in the canal’s operations. Trump has not ruled out using military force to regain control of the canal, though such a move would likely face significant international backlash.
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During his meeting with Mulino and Martínez-Acha, Rubio emphasized that Trump has made a “preliminary determination” that Chinese influence over the canal poses a threat to its neutrality and operation. He warned that the current arrangement violates the 1977 treaty between the U.S. and Panama, which guarantees the canal’s neutrality and ensures its accessibility to all nations.
“Secretary Rubio made clear that this status quo is unacceptable and that absent immediate changes, it would require the United States to take measures necessary to protect its rights under the Treaty,” State Department spokeswoman Tammy Bruce said in a statement.
President Mulino pushed back against Rubio’s demands, reaffirming Panama’s sovereignty over the canal. However, he signaled a willingness to address U.S. concerns by announcing an audit of Chinese-operated ports on both sides of the canal. The findings of the audit will be shared with the U.S. government, Mulino said.
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Additionally, Mulino stated that Panama will not renew its agreement with China regarding the Belt and Road Initiative, which is set to expire next year. He also indicated that Panama is exploring options to exit the agreement sooner, a move that would align with U.S. efforts to counter China’s influence in the region.
Rubio’s visit and the Trump administration’s hardline stance reflect growing U.S. concerns over China’s expanding footprint in Latin America.
The Panama Canal is not only a vital economic asset but also a strategic military chokepoint. Chinese control over key infrastructure in the region could undermine U.S. influence and pose long-term security risks.
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