By Ed Malik, A | ed@ddnewsonline.com | posted 4th February, 2025
U.S. Secretary of State Marco Rubio hopped on the plane during the weekend to Panama City for a ‘Trump-is-not-joking’ meeting with the Panamanian President José Raúl Mulino. After a few minutes of discussions, it looked like Panama finally woke up to reality.
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Sequel, on Sunday, Panamanian President Raúl Mulino announced that his country will not renew its agreement with China’s Belt and Road Initiative, a move that deals a serious blow to Beijing’s influence in Latin America. The decision came after the high-stakes meeting with U.S. Secretary of State Marco Rubio, signaling a major shift in U.S.-Panama relations. And let’s be honest—this should have happened years ago.
For too long, Panama has been playing both sides, cozying up to China while still relying on the United States for security and economic benefits. President Donald Trump has been warning about this for years, calling out Panama for violating the terms of the Panama Canal Treaty by allowing China to establish strategic footholds near the canal while gouging U.S. companies and even the U.S. Navy with outrageous toll fees. Now, with Trump back in charge, the message is clear: Enough is enough.
During the meeting in Panama City, Rubio didn’t mince words. He told Mulino point blank that China’s growing presence in Panama is a direct threat to the security of the waterway and violates the treaty signed under Jimmy Carter in the late 1970s. According to a State Department statement, Rubio made it clear that if immediate changes weren’t made, the United States would take the necessary steps to protect its interests in the canal.
Trump took it even further, reminding the world that the Panama Canal is a “VITAL National Asset” for America. He made it clear in a recent Truth Social post that the U.S. will not tolerate being ripped off by Panama’s excessive fees or seeing China gain control of such a critical waterway.
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“It was likewise not given for Panama to charge the United States, its Navy, and corporations… exorbitant prices and rates of passage,” Trump said. He emphasized that over 70% of all canal transits involve U.S. trade, and warned that this “complete rip-off” would end immediately.
With Panama backing away from China, the next question is whether Trump will follow through on retaking control of the canal. He has not ruled out military action if Panama fails to fully sever ties with the Chinese Communist Party. Given China’s track record of using economic deals to expand its global power, don’t be surprised if Beijing fights to keep its grip on Panama.
One thing’s for sure: Trump isn’t bluffing. Panama now has a choice—stand with America or face the consequences.
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