Trump’s Panama Canal Threat Raises Diplomatic Stakes

News Desk

Islamabad: Marco Rubio is set to embark on his first trip abroad as U.S. Secretary of State, traveling to Panama this Saturday to address rising tensions surrounding the Panama Canal.

His visit comes as President Donald Trump follows through on his aggressive foreign policy stance, with tariffs set to take effect on the U.S.’s three largest trading partners Canada, Mexico, and China.

Trump has reignited controversy over the Panama Canal, which the U.S. handed back to Panama in 1999. The President has threatened to “take it back,” citing concerns over China’s growing influence in the region through investments in nearby ports.

Trump has suggested the U.S. could use military force if necessary, alleging that Panama is allowing Chinese control over the canal’s strategic assets.

In his inaugural address, Trump stated the U.S. would be “taking it back,” a position he reaffirmed Friday, claiming Panama had violated agreements related to the canal. “They’ve already offered to do many things,” Trump said, but insisted it was time for the U.S. to reclaim control.

However, Panama’s President, Jose Raul Mulino, has strongly rejected the idea of negotiating control of the canal, stating that the issue is “sealed” and the canal belongs to Panama. Despite this, his government has initiated an audit of CK Hutchison Holdings, a Hong Kong-based company managing ports on both sides of the canal.

Rubio’s visit to Panama and subsequent travel to four other Latin American nations is part of a broader agenda focusing on migration. His trip marks an unusual start to his tenure as Secretary of State, as previous diplomats typically used their inaugural visits to emphasize cooperation with traditional allies.

While Rubio has downplayed the military option, he has not contradicted Trump’s stance. In a radio interview, he noted the Panama Canal is a vital U.S. interest, emphasizing the need to prevent foreign powers, particularly China, from gaining control over it.

The Panama Canal remains a critical trade route, with approximately 40% of U.S. container traffic passing through it. Rubio’s visit is expected to focus on diplomatic efforts to address the issue while signaling to Panama the importance of U.S. interests in the region.

The Trump administration has blamed former Panamanian President Juan Carlos Varela for increasing China’s influence over the canal, particularly after Varela severed diplomatic ties with Taiwan in favor of China in 2017. U.S. officials allege that Panama has raised costs for American ships, a claim Panama attributes to environmental factors like droughts.

As tensions over the canal escalate, Trump has made it clear that he intends to pressure countries like Panama, as well as Colombia, into aligning with his immigration policies, with recent threats of tariffs used to enforce his agenda.