According to reports from the Associated Press (AP), U.S. Secretary of State Marco Rubio has issued a stern warning to Panamanian President José Raúl Mulino, urging him to take immediate action to curb China's influence over the Panama Canal. Rubio conveyed that President Donald Trump has made a preliminary determination that China’s presence in the canal area violates the treaty ensuring the "permanent neutrality" of the American-built waterway. If Panama fails to act, Rubio indicated that the U.S. would take "necessary measures" to protect its rights under the treaty.

Diplomatic Pressure and Treaty Concerns

During a face-to-face meeting with Mulino, Rubio emphasized that the current status quo is unacceptable. He relayed Trump’s insistence that the canal must be returned to U.S. control to prevent any undue foreign influence, particularly from China. This development comes amid broader tensions as the Trump administration seeks to reassert control over critical global trade routes and economic partnerships.

Mulino, however, sought to downplay the immediate threat, stating, “I don’t feel like there’s a real threat against the treaty and its validity.” He described the meeting as “respectful,” “positive,” and aimed at “clearing up doubts.” The Panamanian leader acknowledged U.S. concerns over China’s role in the ports flanking the canal and noted that an audit of the controlling consortium was already underway. He assured that the Panama Canal Authority would provide Rubio with further clarifications regarding its operations.

Strategic Implications and U.S. Trade Policy

Rubio's warning to Panama aligns with Trump's broader economic and geopolitical strategy. Just one day before this meeting, Trump announced sweeping tariffs on Canada and Mexico, escalating trade tensions with key U.S. neighbors. The firm stance on the Panama Canal underscores the administration’s commitment to countering China’s expanding global reach, particularly through its Belt and Road Initiative.

In a significant policy shift, Mulino also confirmed that Panama would not be renewing its agreement with China’s Belt and Road Initiative once it expires. This move signals a potential shift in Panama's diplomatic alignment, likely influenced by U.S. pressure.

Looking Ahead

As tensions rise over control and influence in the Panama Canal region, the global community will closely watch how Panama navigates its relationship with the U.S. and China. While Mulino has signaled a willingness to address U.S. concerns, it remains to be seen how these diplomatic efforts will unfold and what "necessary measures" the Trump administration may take if it deems Panama’s actions insufficient.