U.S. Secretary of State Marco Rubio brought a warning to Panamanian leader José Raúl Mulino on Sunday: Immediately reduce what President Donald Trump says is Chinese influence over the Panama Canal area or face potential retaliation from the United States.
Panama's President Jose Mulino, left, and U.S. Secretary of State Marco Rubio arrive for a meeting at presidential palace in Panama City, Sunday, Feb. 2, 2025.
Mulino told reporters after the meeting that Rubio made “no real threat of retaking the canal or the use of force.” The statement was unusually blunt in diplomatic terms, but in keeping with the tenor and tone Trump has set for foreign policy. Trump has been increasing pressure on Washington’s neighbors and allies, including the canal demand and announcing Saturday that he was imposing major tariffs on Canada and Mexico. That launched a trade war by prompting retaliation from those close allies.
Rubio later toured the canal at sunset with its administrator, Ricaurte Vásquez, who has said the waterway will remain in Panama’s hands and open to all countries. Rubio crossed the lock and visited the control tower, looking down over the water below, where a red tanker was passing through. In a Sunday evening post on X, formerly Twitter, Defense Secretary Pete Hegseth said he’s heading to the U.S.-Mexico border Monday to visit troops deployed as part of Trump’s immigration crackdown.
Despite Mulino’s rejection of any negotiation over ownership, some believe Panama may be open to a compromise under which canal operations on both sides are taken away from the Hong Kong-based Hutchison Ports company, which was given a 25-year no-bid extension to run them. An audit into the suitability of that extension is already underway and could lead to a rebidding process.
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