Marco Rubio is preparing for his first overseas trip as U.S. Secretary of State, heading to Panama this Saturday to address rising concerns over the Panama Canal.
The visit coincides with President Donald Trump’s aggressive foreign policy moves, including tariffs set to impact the U.S.’s three largest trading partners: Canada, Mexico, and China.
Trump has reignited a contentious debate over the Panama Canal, which the U.S. transferred to Panama in 1999. The president has suggested that the U.S. could “take it back,” citing fears about China’s growing influence in the region through investments in nearby ports. He has even raised the possibility of using military force, claiming Panama is allowing Chinese control of the canal’s strategic infrastructure.
In his inaugural address, Trump vowed the U.S. would “take it back” and reaffirmed the stance on Friday, accusing Panama of breaching agreements related to the canal. “They’ve already offered to do many things,” Trump said, but insisted it was time for the U.S. to reclaim control.
However, Panama’s President, Jose Raul Mulino, has firmly rejected any discussions about relinquishing control of the canal, declaring that the matter is “sealed” and the canal is rightfully Panama’s. Despite this, Panama has launched an audit of CK Hutchison Holdings, a Hong Kong-based company that manages ports on both sides of the canal.
Rubio’s trip to Panama and subsequent travels to four other Latin American countries reflect a broader diplomatic agenda, with a strong focus on migration. His visit is unusual for a new Secretary of State, as previous first trips typically emphasized strengthening ties with traditional allies.
While Rubio has minimized the prospect of military intervention, he has refrained from rejecting Trump’s viewpoint. In a radio interview, he reiterated that the Panama Canal is a crucial U.S. interest, stressing the importance of preventing foreign powers, especially China, from gaining influence over it.
The Panama Canal remains an essential trade route, handling about 40% of U.S. container traffic. Rubio’s visit aims to prioritize diplomatic engagement while emphasizing the significance of U.S. interests in the region.
The Trump administration has criticized former Panamanian President Juan Carlos Varela for allowing China to expand its presence in the canal area, particularly after Varela severed ties with Taiwan in favor of China in 2017. U.S. officials also claim that Panama has raised costs for American ships, although Panama attributes this to environmental factors like droughts.
As tensions surrounding the canal increase, Trump has made it clear that he intends to press countries like Panama and Colombia to align with his immigration policies, using tactics like tariffs to enforce his agenda.
