In a dramatic escalation of tensions over one of the world’s most crucial maritime passages, President Donald Trump threatened US intervention in the Panama Canal on Sunday, citing concerns over alleged Chinese influence in the region.

“China is running the Panama Canal that was not given to China; that was given to Panama foolishly, but they violated the agreement, and we’re going to take it back, or something very powerful is going to happen,” Trump declared to reporters, intensifying a diplomatic crisis that has been brewing between the United States and Panama.

High-stakes diplomacy

The situation reached a critical point as Secretary of State Marco Rubio made an emergency diplomatic visit to Panama, meeting with President Jose Raul Mulino to address US concerns. According to State Department spokeswoman Tammy Bruce, Rubio “made clear that this status quo is unacceptable and that absent immediate changes, it would require the United States to take measures necessary to protect its rights under the treaty.”

Panamanian response

President Mulino, maintaining a diplomatic tone while standing firm, characterized the meeting as “respectful and cordial.” He insisted that Panama maintains full operational control of the canal and intends to continue doing so, effectively pushing back against claims of Chinese influence.

In a significant development, Mulino indicated his administration would not renew China’s Belt and Road Initiative when it expires, potentially easing some US concerns about Beijing’s regional influence.

Historical context

The Panama Canal, a vital waterway connecting the Atlantic and Pacific Oceans, was constructed by the United States and opened in 1941. The channel was transferred to Panamanian control in 1999 under an agreement signed by President Jimmy Carter in 1977.

Beyond the canal controversy, the diplomatic meeting also addressed regional migration challenges. “We spoke extensively about the problem of migration, with the understanding that Panama is a transit point,” President Mulino noted, suggesting a potential expansion of deportation agreements involving Venezuela, Ecuador, and Colombia.

Strategic implications

The dispute over the Panama Canal highlights growing tensions between the United States and China in Latin America as both nations vie for influence in this strategically crucial region. The canal remains one of the world’s most important maritime thoroughfares, handling approximately 5% of global maritime commerce.