US Secretary of State Marco Rubio has told Panamanian officials that China’s influence over the Panama Canal must be reduced, or the US will take retaliatory action. This warning comes after President Trump’s repeated demands to regain control of the canal.
Trump has claimed that Panama charges American ships higher rates than other nations and wants the Hong Kong-based company running the canal to return it to the US. However, Panamanian President José Raúl Mulino has rejected these demands.
Rubio stated that China’s influence over the canal is a threat to its neutrality, according to the treaty between the US and Panama. He warned that if changes are not made, the US will take measures to protect its rights under the treaty.
In response, Mulino announced that Panama will conduct an audit of Chinese-operated ports on both sides of the canal and may review its agreement with China’s Belt and Road initiative, which is set to expire next year.
Source: https://www.axios.com/2025/02/02/trump-panama-canal-china-rubio