Protests erupted near the U.S. embassy in Panama City following statements by former U.S. President Donald Trump suggesting the United States might reclaim control of the Panama Canal.
Panama’s President José Raúl Mulino categorically denied Trump’s allegations that Chinese soldiers are operating at the canal, dismissing the claim as “nonsense.”
In a post on his Truth Social platform, Trump wrote, “Merry Christmas to all, including to the wonderful soldiers of China, who are lovingly, but illegally, operating the Panama Canal.” The post accompanied threats to regain U.S. control of the canal, with Trump accusing Panama of exploiting the U.S. with high shipping fees.
“There is not a single Chinese soldier in the canal,” Mulino said in a press conference in Panama City. “There is absolutely no Chinese interference.”
Mulino also stood firm on Panama’s sovereignty over the canal, which connects the Atlantic and Pacific Oceans. He ruled out any negotiation to reduce tolls for U.S. ships or reconsider Panamanian control. “The canal is Panamanian and belongs to Panamanians. There is no possibility of discussing this reality,” he said.
Diplomatic Ties with China
After breaking diplomatic ties with Taiwan in 2017, Panama established formal relations with China, fostering economic and trade cooperation. Mulino described the relationship as “respectful and well-managed” and focused on mutual benefits for both countries.
U.S. Appointments and Criticism
Trump announced on Christmas Day his intention to nominate Kevin Marino Cabrera, a Republican from Florida and supporter of Trump’s 2020 campaign, as the U.S. ambassador to Panama. In his announcement, Trump stated Cabrera would “do a fantastic job representing our Nation’s interests in Panama.”
Meanwhile, Trump continued to criticize Panama, accusing the country of “ripping us off” with excessive canal tolls. At a gathering of conservative activists, Trump declared, “The fees being charged by Panama are ridiculous, highly unfair.” He warned that if shipping rates were not reduced, the U.S. would demand the canal’s return “in full, quickly, and without question.”
China’s Role and U.S. Concerns
Trump also expressed concerns about the canal “falling into the wrong hands,” specifically mentioning China. China, the second-largest user of the canal after the U.S., has significant investments in Panama, including the management of ports at both ends of the canal by Hong Kong-based CK Hutchison Holdings.
A Symbol of Panamanian Sovereignty
The Panama Canal, which facilitates the passage of approximately 14,000 ships annually, remains a vital international shipping route. Built in the early 20th century, the canal was under U.S. control until a 1977 treaty initiated its gradual handover to Panama, culminating in full Panamanian control in 1999.
Recent canal toll increases have been linked to a historic drought, according to the shipping industry website Lloyd’s List.
Despite Trump’s remarks, Mulino reaffirmed Panama’s sovereignty, asserting that the canal is a cornerstone of the nation’s identity and will remain under Panamanian authority. Photo by Stan Shebs, Wikimedia commons.