The Associated Press’s Matthew Lee

PANAMA CITY In a face-to-face meeting on Sunday, U.S. Secretary of State Marco Rubio warned the president of Panama that the Trump administration will take the necessary steps to force the Central American partner to lessen its purported Chinese influence over the Panama Canal region.

President Jose Raul Mulino, who has resisted criticism from the new U.S. government over Panama’s handling of the waterway that is essential to international trade, met with Rubio during his first international trip as America’s top diplomat.

According to a summary of the meeting released by the U.S. State Department, Rubio told Mulino that President Donald Trump thought the current state of affairs at the canal was intolerable and that, in the absence of quick fixes, the United States would have to take the necessary steps to defend its rights under a U.S. treaty with Panama.

THIS NEWS UPDATE IS BREAKING. Below is AP’s earlier story.

The city of Panama (AP) As President Donald Trump stepped up pressure on Washington’s allies and neighbors, including demanding the return of the Panama Canal to the United States, U.S. Secretary of State Marco Rubio met with the president of Panama on Sunday on the first stop of his first international trip as America’s top diplomat.

Rubio was extending a warm greeting to Panama’s foreign minister a day after Trump declared he was enacting significant tariffs on Canada and Mexico, which prompted retaliation from those nations. However, neither he nor President Jos Ra l Mulino made any public remarks during their meeting.

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After that, Rubio intended to see an energy factory and then the canal, which Trump was quite interested in.

Mulino has stated that ownership of the canal will not be negotiated with the United States, and several Panamanians have protested Trump’s ambitions.

While the conference was taking place, some 200 protesters marched through Panama City on Sunday, waving Panamanian flags and yelling, “Marco Rubio out of Panama,” “Long live national sovereignty,” and “One territory, one flag.” After riot police halted them short of the presidential palace, some set fire to a flag featuring pictures of Trump and Rubio.

Mulino expressed his expectation that Rubio’s visit would center on topics of mutual interest, such fighting drug trafficking and migration. However, Rubio’s visit coincides with the suspension of U.S.-funded initiatives aimed at combating crime and illegal migration in Central American nations due to a ban on foreign aid funds and stop-work orders.

Rubio has stated that he will convey the message that the United States wishes to regain control of the Panama Canal in spite of strong opposition from regional leaders in order to counter China’s expanding influence in the hemisphere, even as he presses Trump’s main priority of reducing illegal immigration.

Rubio claimed in a Wall Street Journal opinion piece on Friday that the waterway is susceptible to pressure from the Beijing government because of the chaos caused by drugs, mass migration, and the hostile policies of Cuba, Nicaragua, and Venezuela. He also mentioned that port facilities at either end of the canal are operated by a Chinese company.

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Rubio stated a day ago that we would talk about the subject. The president has made it apparent that he wants to re-run the canal. The Panamanians are obviously not very fond of that notion. It has made that point quite evident.

The Panamanians have vehemently objected to Trump’s demand to return the American-built canal, which was given to them in 1999.

On Sunday, February 2, 2025, U.S. Secretary of State Marco Rubio, second from right, meets with Panamanian President Jose Raul Mulino, left, at the Panama City presidential palace. (Mark Schiefelbein/AP Photo, Pool)AP

Some people think Panama would be amenable to a solution whereby canal operations on both sides are taken away from the Hong Kong-based Hutchison Ports business, which was granted a 25-year no-bid renewal to operate them, even though Mulino rejected any ownership negotiations. A rebidding procedure may result from an audit already underway to determine whether that extension is appropriate.

Trump’s criteria seem to go beyond operations, so it’s unclear if he would support the concession being transferred to an American or European business.

In addition to El Salvador, Costa Rica, Guatemala, and the Dominican Republic, Rubio’s tour coincides with a standstill in U.S. foreign aid. Although specifics were not immediately available, the State Department announced on Sunday that Rubio had granted waivers for a number of crucial programs in the nations he is visiting.

This article was written by Juan Zamorano of the Associated Press.

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