US Deals Indirect Blow To China; Warns Panama To Reduce Chinese Influence Or Face 'Necessary Measures'

Days after implementing tariffs on China and Canada, the United States is now urging other nations to curb Chinese influence. U.S. Secretary of State Marco Rubio warned Panama about China’s growing control over the Panama Canal, calling the situation "unacceptable" and stating that the U.S. will take "necessary measures" if changes are not made.

During a meeting on Sunday in Panama City with Panamanian President Jose Raul Mulino and Foreign Minister Javier Martinez, Rubio relayed U.S. President Donald Trump’s concerns.

"I met with Panamanian President Jose Raul Mulino 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," said Rubio on X.

U.S. President Donald Trump "has made a preliminary determination that the Chinese Communist Party’s current influence and control over the Panama Canal area is a threat," State Department spokesperson Tammy Bruce said in a statement.

Secretary of State Marco Rubio reinforced this stance, calling the situation "unacceptable" and warning that if "immediate changes" are not made, the U.S. will take necessary measures to protect its rights under the Treaty concerning the Permanent Neutrality and Operation of the Panama Canal.

Rubio arrived in Panama on Saturday, marking his first official trip since assuming the role of the United States' top diplomat.

Rubio's choice to visit Central America - Panama, El Salvador, Costa Rica, Guatemala, and the Dominican Republic - is intentional and meant to drive forward the Trump agenda by "paying closer attention to our own neighbourhood," CNN reported. Trump in his inaugural address on January 20, claimed that China is "operating" the Panama Canal and US is going to "take it back" as the US has been treated 'unfairly.'

After being sworn in as the 47th US President at the US Capitol in Washington, DC, he said, "The United States, I mean, think of this, spent more money than ever spent on a project before and lost 38 lives in the building of the Panama Canal. We have been treated very badly from this foolish gift that should never been made, and Panama's promise to us has been broken."

Responding to Trump's threats, Panama President Mulino said the Panama Canal would continue to operate under Panamian control and no nation must interfere in Panama's matters. "In the name of the Republic of Panama and its people, let us consider integrally the words uttered by President Donald Trump regarding Panama and its Canal, in his inaugural speech. Again he expressed in his message to the Nation, last December 22: the Canal is and will continue to operate under Panamanian control with respect for its permanent neutrality. There is no presence of any nation in the world that interferes with our administration," he said.