Rubio Warns Panama: Reduce Chinese Influence or Face U.S. Action/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ U.S. Secretary of State Marco Rubio delivered a stark warning to Panama’s President José Raúl Mulino, urging him to limit Chinese influence over the Panama Canal or risk U.S. retaliation. While Panama rejected U.S. control over the canal, Mulino confirmed the country will not renew its Belt and Road agreement with China. The meeting follows Trump’s recent push for stricter foreign policies, including tariffs on Canada and Mexico.
U.S. Pressures Panama Over China’s Role in Canal: Quick Looks
- Marco Rubio warns Panama to cut Chinese influence around the Panama Canal.
- Trump believes China’s involvement may violate the 1999 U.S.-Panama Canal treaty.
- Rubio suggests possible U.S. action if changes aren’t made.
- Panama’s President Mulino refuses to negotiate U.S. control of the canal.
- Panama will not renew its Belt and Road Initiative agreement with China.
- Protests erupted in Panama City against U.S. intervention.
- China-linked Hutchison Ports controls operations at both ends of the canal.
- U.S. foreign aid to Central America remains frozen, but waivers are being issued.
Rubio Warns Panama: Reduce Chinese Influence or Face U.S. Action
U.S.-Panama Tensions Over the Canal: Deep Look
Rubio Delivers Trump’s Message: Cut Ties with China
Rubio, acting on behalf of President Donald Trump, claimed that China’s growing presence in canal operations may violate the 1999 Panama Canal Treaty, which guarantees the canal’s permanent neutrality.
“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.” – U.S. State Department
Rubio’s direct approach aligns with Trump’s aggressive foreign policy, which has included tariffs on U.S. allies and increased pressure on Latin America over trade, migration, and security.
Panama Rejects U.S. Control but Ends China Agreement
Despite the warning, Mulino rejected any possibility of U.S. administration over the canal, stating:
“There is no real threat to the treaty and its validity.”
“Panama will not extend its agreement with China’s Belt and Road Initiative.” – President Mulino
The Belt and Road Initiative has been criticized for creating debt traps for smaller nations, giving China strategic control over major infrastructure projects worldwide.
China’s Canal Control: U.S. Concerns
- Hutchison Ports, a Hong Kong-based company, operates both entrances to the canal.
- The U.S. fears Beijing could exert political or economic pressure over canal operations.
- China has invested heavily in Latin America, increasing its regional influence.
A Panamanian government audit of the 25-year, no-bid extension granted to Hutchison Ports is already underway. If Panama revokes the contract, it could potentially rebid canal operations to American or European companies—a move that might satisfy Trump’s demands.
Growing Anti-U.S. Protests in Panama
Protesters carried Panamanian flags and chanted:
- “Marco Rubio out of Panama!”
- “Long live national sovereignty!”
- “One territory, one flag!”
Some demonstrators burned banners featuring Trump and Rubio, but were stopped by riot police before reaching the presidential palace.
Trump’s Bigger Foreign Policy Shift in Latin America
Rubio’s harsh stance on Panama is part of a broader Trump administration strategy focused on:
- Countering China’s growing influence in Latin America.
- Pressuring allies like Canada and Mexico, which are already facing new U.S. tariffs.
- Restricting illegal migration, particularly from Central America.
Rubio thanked Panama for its cooperation on deportations, reinforcing Trump’s border crackdown.
Meanwhile, Defense Secretary Pete Hegseth announced he is traveling to the U.S.-Mexico border to oversee troops enforcing Trump’s immigration policies.
U.S. Foreign Aid Freeze & Its Impact
- Trump’s administration has frozen U.S. foreign aid to Central America, cutting funding for programs on crime prevention and migration control.
- Rubio approved limited waivers for critical programs, but details remain unclear.
- Trump’s America First policy prioritizes trade leverage over foreign aid commitments.
What’s Next? Key Questions Remain
- Will Panama’s refusal to negotiate U.S. control over the canal lead to retaliation?
- Will Panama remove Hutchison Ports from canal operations to ease U.S. pressure?
- Will Trump push further economic or diplomatic actions against Panama?
- How will China react to losing its Belt and Road foothold in Panama?
The situation remains fluid, with potential economic and political fallout for U.S.-Panama relations in the coming months.
