Rubio talks with Panamanian President concerning China influence over canal
U.S. Secretary of State Marco Rubio warned Panamanian President José Raúl Mulino on Sunday that Panama must quickly reduce Chinese influence around the Panama Canal, or face potential retaliation from the Trump administration.
During his first overseas trip as America’s top diplomat, Rubio met face-to-face with Mulino, who has resisted U.S. pressure over Panama’s control of the canal, a key global trade route. Following the meeting, Mulino told reporters that Rubio didn’t directly threaten military action or the canal’s reclamation.
Speaking on behalf of President Trump, who has insisted that the canal be returned to U.S. control, Rubio told Mulino that Trump had preliminarily concluded that China’s presence near the canal violates a treaty that led to the waterway’s handover to Panama in 1999. The treaty stipulates the canal’s permanent neutrality, a key issue Rubio planned to address during his tour later that day.
“The Secretary made it clear that the current situation is unacceptable,” the State Department said in a summary of the meeting, adding that if Panama does not act immediately, the U.S. may take necessary steps to protect its rights under the treaty.
This blunt statement reflects Trump’s hard-nosed approach to foreign policy, which includes increasing pressure on both allies and adversaries alike, such as the trade war with Canada and Mexico.
Despite the tension, Mulino described the talks as "respectful" and "positive," insisting that there was no real threat to the treaty’s validity. He acknowledged U.S. concerns over China’s role in the canal's port operations but reassured Rubio that audits were underway and Panama would provide more information.
Mulino also confirmed that Panama would not renew its participation in China’s Belt and Road Initiative, which aims to fund infrastructure projects in member countries but has been criticized for leading to heavy debt burdens. Panama joined the initiative after switching diplomatic recognition from Taiwan to Beijing.
As Rubio met with Mulino, around 200 protesters gathered in Panama City, waving flags and chanting slogans like "Marco Rubio out of Panama," in response to U.S. pressure. Some even burned banners depicting Trump and Rubio after being stopped by riot police near the presidential palace.
Rubio also pressed the issue of illegal immigration, which is a top priority for President Trump. He thanked Mulino for Panama’s cooperation in taking back migrants but noted that U.S. aid to the region has been frozen, halting programs targeting illegal migration and crime in Central America.
In a Wall Street Journal op-ed, Rubio emphasized that the combination of mass migration, drug trafficking, and hostile policies from Cuba, Nicaragua, and Venezuela had destabilized the region. He also expressed concern that Chinese-run port facilities at both ends of the canal could allow Beijing to exert pressure over the vital waterway.
“The president’s been very clear: he wants to administer the canal again,” Rubio said. “Obviously, Panama isn’t in favor of that. That message has been made clear.”
While Mulino rejected any negotiations over the canal’s ownership, some believe Panama could be open to a compromise where control of the canal ports is removed from the Hong Kong-based Hutchison Ports company, which has a controversial 25-year contract. An ongoing audit of the extension could lead to a rebidding process.
It remains uncertain whether Trump would view a shift in control to an American or European company as sufficient to meet his demands, which appear to go beyond operational control.
Rubio’s trip, which includes visits to El Salvador, Costa Rica, Guatemala, and the Dominican Republic, is taking place amid a freeze on U.S. foreign aid. The State Department confirmed that Rubio had authorized exceptions for some critical programs, though specific details were not immediately available.
