Rubio Warns Panama Over Chinese Influence Near Canal

Secretary of State Marco Rubio issued a stark warning to Panamanian leaders, making it clear that the U.S. would defend its rights under the Panama Canal Treaty if Panama failed to remove Chinese-affiliated companies near the vital waterway.

“The current position of influence and control of the Chinese Communist Party over the Panama Canal area is a threat to the canal and represents a violation of the Treaty Concerning the Permanent Neutrality and Operation of the Panama Canal,” a State Department readout stated following Rubio’s meeting with Panamanian President Jose Raul Mulino and Foreign Minister Javier Martinez-Acha.

Echoing concerns voiced by President Donald Trump since December, Rubio emphasized that the “status quo is unacceptable” and that failure to address the issue would force the U.S. to “take measures necessary to protect its rights under the Treaty.”

Despite Rubio’s warning, Mulino downplayed any immediate concerns, telling reporters that the meeting was “respectful and cordial.” He dismissed the notion of a threat to the treaty or any risk of U.S. military intervention, suggesting instead that a technical team could help “clear up whatever needs to be cleared up” regarding the canal.

China’s Expanding Influence and Trump’s Response

China’s growing presence in Latin America has been a point of contention, particularly after a previous Panamanian administration cut ties with Taiwan in 2017 and embraced Beijing’s “One China” policy. However, in a move that signals a shift away from China, Mulino informed Rubio that Panama would not renew its participation in China’s Belt and Road Initiative.

China, meanwhile, has maintained that it respects Panama’s sovereignty over the canal and recognizes it as a neutral international waterway. However, a Hong Kong-based Chinese company, CK Hutchison Holdings Ltd., controls two of the five ports adjacent to the canal — one on each side — raising concerns in Washington.

The canal has been under intense scrutiny since December when Trump blasted Panama for imposing what he called “exorbitant” toll fees on U.S. ships. He demanded that the fees be reduced or that the canal be returned to American control. Trump has long criticized the 1977 treaty signed by Jimmy Carter that transferred control of the canal to Panama in 1999, calling it a disastrous mistake.

Rubio’s Regional Tour and America First Agenda

Rubio’s trip to Panama is part of a broader six-day tour through Central America, with stops in El Salvador, Costa Rica, Guatemala, and the Dominican Republic. His visit marks the first time in over a century that a newly appointed top U.S. diplomat has prioritized Latin America over traditional stops in Europe or Asia.

The timing of the trip coincides with Trump’s latest economic and immigration actions, including the announcement of 25% tariffs on Mexico and Canada and 10% tariffs on China. Trump is also pressuring Latin American nations to accept deportees, as well as bolstering efforts to curb drug trafficking.

In an op-ed for the Wall Street Journal, Rubio framed his trip as part of Trump’s commitment to “put America first,” focusing on border security, trade fairness, and regional stability. He also discussed Panama’s role in curbing illegal migration through the Darien Gap, where crossings have reportedly decreased by 94%. Mulino even offered an airstrip near the area to facilitate repatriation proceedings.

As Rubio takes the lead in shaping Trump’s Latin America policy, his visit signals a shift in U.S. diplomatic priorities — one that places national security and economic leverage at the forefront.

Do you agree with Donald Trump’s efforts to reclaim the Panama Canal? Let us know in the comments below!