Secretary of State Marco Rubio told Panamanian President José Raúl Mulino on Sunday that immediate action is needed to curb Chinese influence over the Panama Canal, warning that failure to do so could prompt retaliatory measures from the Trump administration.
During a high-stakes meeting in Panama City, Rubio relayed President Donald Trump’s concerns that Beijing’s presence in the canal zone violates the neutrality treaty governing the 1999 U.S. handover of the waterway to Panama.
“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,” the State Department said in a summary of the meeting.
Mulino, who has resisted U.S. pressure over Panama’s handling of the canal, downplayed the likelihood of an American takeover, saying, “I don’t feel like there’s a real threat against the treaty and its validity.”
The talks come amid Trump’s escalating foreign policy maneuvers, including newly imposed tariffs on Canada and Mexico, which have already triggered retaliatory measures from those nations.
Panama’s Response and China’s Role
While Mulino described the meeting as “respectful” and “positive”, he acknowledged Washington’s unease over Chinese control of port facilities on both ends of the canal. He confirmed that the consortium managing the ports is under audit and that Panama will not renew its Belt and Road Initiative agreement with China when it expires.
Despite these assurances, hundreds of Panamanians took to the streets during the talks, chanting “Marco Rubio out of Panama” and “One territory, one flag”, with some demonstrators burning banners depicting Trump and Rubio before being stopped by riot police.
Trump’s Push for U.S. Oversight
Trump has repeatedly called for the U.S. to regain control of the canal, arguing that China’s economic grip on the region poses a strategic threat to American security and trade interests.
“We’re going to address that topic,” Rubio told reporters ahead of the meeting. “The president’s been pretty clear he wants to administer the canal again. Obviously, the Panamanians are not big fans of that idea.”
Although Mulino ruled out any negotiation over ownership, reports suggest that Panama may consider stripping the Hong Kong-based Hutchison Ports company of its 25-year no-bid contract and opening operations to new bidders. However, it remains unclear whether Trump would accept a transfer of the concession to a U.S. or European firm as meeting his demands.
Broader Regional Objectives
Rubio’s Central America trip, which will also take him to El Salvador, Costa Rica, Guatemala, and the Dominican Republic, focuses on curbing illegal migration, combating drug trafficking, and countering China’s expanding influence in the hemisphere.
Rubio Pushes for Panama Canal Review Amid Growing U.S.-China Tensions
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