The United States has demanded that Panama reduce China’s influence over the Panama Canal or face serious consequences, as tensions rise over the waterway’s neutrality.
According to the Financial Times, US Secretary of State Marco Rubio met with Panamanian President José Raúl Mulino in Panama City, warning that China posed “a threat to the canal” and had violated its neutrality clause under a longstanding treaty. Rubio stated that unless changes were made, the US would take “necessary measures” to protect its rights.
Trump has been vocal about his dissatisfaction with China’s role in Panama, previously calling canal fees “a complete rip-off” and even suggesting that the US should take back control of the canal. At the heart of US concerns are two ports operated by Hutchison Ports, a subsidiary of Hong Kong-listed CK Hutchison Holdings, which were given a 25-year extension without a bidding process in 2021. Mulino acknowledged US concerns and announced an audit of the port concessions, raising speculation that they could be revoked.
The diplomatic pressure has sparked backlash in Panama, where around 200 protesters took to the streets on Sunday, chanting “Marco Rubio out of Panama” and burning a banner featuring Trump and Rubio. Despite this, Mulino made a significant gesture toward Washington by confirming that Panama would not renew its participation in China’s Belt and Road Initiative, though he did not specify an expiration date.
Beyond the canal dispute, Rubio also praised Panama for its crackdown on illegal migration, citing a 94% drop in crossings through the Darién Gap. The US is also pushing for a better investment climate for American businesses in Panama, signaling broader geopolitical and economic stakes in the region.
