Trump’s Panama Push: Curbing Chinese Influence in the Canal
Panama takes center stage as President Trump aims to curb Chinese influence in the Panama Canal. Secretary of State Marco Rubio’s inaugural foreign trip to Panama delivered a clear message: “immediate changes” are necessary, or the U.S. will intervene. Trump’s been vocal about Panama’s treatment of American vessels, even hinting at potential military actions.
Panamanian President Josรฉ Raรบl Mulino has rebuffed claims of Chinese control over the canal, assuring that the Panama Canal Authority runs operations. However, after Rubio’s visit, Panama made significant concessions:
- Backing away from China’s Belt and Road Initiative
- Agreeing to give U.S. Navy ships free passage through the canal
- Conducting an internal audit of Chinese-linked ports
China’s embassy pushed back on Rubio’s stance, emphasizing their historical ties with Panama. But Trump’s focus remains on keeping the canal free from Chinese influence, mixing diplomacy, economics, and a dash of nationalism in his approach.

Strategic Realignment: Panama’s Pivot from China
President Mulino’s decision to back away from China’s Belt and Road Initiative signals Panama’s strategic realignment. This move shows Panama’s desire to limit China’s influence in its maritime infrastructure and aligns with Trump’s broader geopolitical objectives.
By rejecting the initiative, Panama is asserting its sovereignty and reducing dependency on Chinese economic interests. This decision could lead to enhanced economic cooperation and security assurances with Western powers like the United States.
"A leap towards securing Panama's and America's shared interests."
– U.S. National Security Advisor Mike Waltz on Mulino’s decision
This shift might encourage other Latin American countries to reconsider their involvement in Chinese-funded projects, potentially reshaping regional dynamics.
Mulino aims to strike a diplomatic balance, ensuring Panama retains control of its waters while maintaining neutrality in canal operations. China remains cautious but diplomatic, wary of losing ground in a region crucial to its Belt and Road ambitions.
The implications of these shifts are far-reaching, potentially recalibrating trade patterns and political alliances. As Panama navigates the ripple effects of its decision, the global stage watches keenly, with Trump’s administration hailing these developments as proof of America’s enduring influence in the Western Hemisphere.
The Panama Canal: A Historical Perspective
For over half a century, the Panama Canal was a linchpin of American strategic control. The Torrijos-Carter Treaties in 1977 marked a shift, transferring control from the U.S. to Panama in 1999. This handover symbolized the end of an era and sparked debate stateside about relinquishing American influence over such a critical artery of global commerce.
Today, China’s growing interest in the region has raised concerns in Washington. The canal isn’t just a watery pathway; it’s the circulatory system of international trade, with 5 to 6 percent of world commerce flowing through its 51-mile stretch.
As President Trump champions the reassertion of American influence, ensuring the canal’s neutral status remains unchallenged forms part of his vision to re-solidify America’s grasp on international trade routes. It’s a diplomatic high-wire act, advancing Trump’s mission to safeguard interests that ripple through the currents of global trade.
With Trump at the helm, America stands ready to protect its interests in this waterway critical to both hemispheres. Panama now finds itself at a crossroads, balancing its sovereignty with the pressures of global powers vying for influence.
- Council on Foreign Relations. The Panama Canal: What to Know. 2024.
- U.S. Department of State. Secretary Rubio’s Meeting with Panamanian President Mulino. 2024.
- Center for Strategic and International Studies. Chinese Infrastructure Projects in Panama. 2024.