Secretary of State Marco Rubio just delivered a major diplomatic win for President Donald Trump. After a high-stakes meeting with Panamanian President José Raúl Mulino, Panama has terminated its agreement with China, dealing a huge blow to the Chinese Communist Party’s (CCP) influence in the Panama Canal.
Rubio’s message was clear: The U.S. will not tolerate Chinese control over one of the world’s most strategic waterways.
“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.” – Secretary of State Marco Rubio
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… pic.twitter.com/Hj0pXGahqk
— Secretary Marco Rubio (@SecRubio) February 2, 2025
China’s Grip on the Canal Is Over
For years, China has used its Belt and Road Initiative to gain a foothold in Panama, securing control over key infrastructure near the canal. But after meeting with Rubio and Foreign Minister Javier Martínez-Acha, Mulino agreed to withdraw from China’s Silk Road initiative and cut Beijing out of Panama’s economic future.
“I believe this visit opens a way to build a new stage of relations,” Mulino said after the meeting. “We will work to increase U.S. investments in Panama.”
BREAKING: The President of Panama just terminated Panama's agreement with China immediately after meeting with Secretary of State Marco Rubio.
"I believe that this visit opens a way to build a new stage of relations, that is how I see it, that is how I felt it on the part of… pic.twitter.com/UxNXFMExCS
— George (@BehizyTweets) February 2, 2025
This move undoes years of Chinese expansion in the Western Hemisphere and signals Trump’s determination to reassert U.S. dominance over critical global trade routes.
Trump’s Warning: “The Panama Canal Is Vital to Our Country”
President Trump has been vocal about Panama’s failure to uphold its commitments since the U.S. handed over control of the canal in 1977 under Jimmy Carter. He has repeatedly warned that China’s presence is a direct violation of the treaty that guarantees neutrality in the canal.
Rubio echoed those concerns, telling Panama that this status quo is unacceptable and that the U.S. will take necessary measures to protect its rights under the treaty.
When asked last month if military action was on the table, Trump did not rule it out.
“The Panama Canal was built for our military,” Trump told reporters. “I’m not going to commit to that now… but it might be that you’ll have to do something.”
His warning couldn’t be clearer: If Panama won’t protect the canal, the U.S. will.
Conclusion: America Is Back in Charge
The CCP’s influence in the Panama Canal just took a massive hit, and it’s all thanks to Trump’s America First leadership. By pressuring Panama to cut ties with China, Trump is reclaiming America’s strategic control over the canal and sending a strong message to Beijing: The days of unchecked Chinese expansion are over.
With Rubio leading the charge, this is just the beginning of Trump’s plan to restore U.S. power in global trade and military strategy.
China just lost big. America just won.