Overview

• 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.