U.S.-Panama Relations Strained Over Canal Control and Fee Dispute

President Trump’s push to curb Chinese influence in the Panama Canal and secure fee exemptions for U.S. ships has sparked nationalist backlash in Panama and diplomatic tensions.

• The Trump administration has raised concerns over Chinese economic influence and infrastructure control at the Panama Canal, citing U.S. national security implications.
• Secretary of State Marco Rubio's recent visit to Panama sought to address these concerns, leading to agreements to limit Chinese activities and withdraw Panama from China's Belt and Road Initiative.
• A U.S. claim that Panama agreed to waive canal fees for U.S. ships was denied by Panamanian President José Raúl Mulino, who accused the Trump administration of spreading falsehoods.
• Trump’s rhetoric about potentially using military action to regain control of the canal has revived nationalist sentiment in Panama, with protests emphasizing the canal’s importance to national identity.
• The dispute reflects broader tensions over U.S. foreign policy in Latin America, as Trump’s confrontational approach risks alienating allies in the region.

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