Trump's Threats Deliver a Big Win as Panama Agrees to Alter Course on Canal

Panamanian President José Raúl Mulino declared on Sunday that his administration will be terminating a development agreement with communist China.

This decision was announced during a visit from Secretary of State Marco Rubio to Panama, marking a significant victory for U.S. diplomacy and the America First agenda.

Rubio stated in a Sunday post on X, “I met with Panamanian President @JoseRaulMulino and Foreign Minister @javierachapma to make clear that the United States cannot, and will not, allow the Chinese Communist Party to continue with its effective and growing control over the Panama Canal area. We also discussed efforts to end the hemisphere’s mass migration crisis and ensure fair competition for U.S. firms.”

In a follow-up post on Monday morning, the secretary emphasized, “Yesterday’s announcement by President @JoseRaulMulino that Panama will allow its participation in the CCP’s Belt and Road Initiative to expire is a great step forward for U.S.-Panama relations, a free Panama Canal, and another example of @POTUS leadership to protect our national security and deliver prosperity for the American people.”

Fox News noted that Panama had originally joined China’s global Belt and Road development program in 2017.

Under this initiative, China provides infrastructure improvements, often in ports, in exchange for economic access and political leverage over participating nations.

State Department spokesperson Tammy Bruce issued a statement on Sunday, explaining, “Secretary Rubio informed President Mulino and Minister Martínez-Acha that President Trump has made a preliminary determination that the current position of influence and control of the Chinese Communist Party over the Panama Canal area is a threat to the canal and represents a violation of the Treaty Concerning the Permanent Neutrality and Operation of the Panama Canal.”

“Secretary 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,” she continued.

The treaty referenced was established between the U.S. and Panama in 1977 under then-President Jimmy Carter, regulating the transfer of the canal to Panamanian control.

Speaking to reporters on Sunday night, Trump stated that Panama was in violation of the agreement.

“They’re not allowed to violate the agreement,” he said. “China’s running the Panama Canal. It was not given to China. That was given to Panama, foolishly. But they violated the agreement. We’re going take it back, or something very powerful is going to happen.”

Clearly, President Mulino received the message from Trump and Rubio, leading him to make adjustments accordingly.

This marks another success for America First.