The White House has ordered the U.S. military to develop plans for increasing troop presence in Panama to counter China’s influence and secure the Panama Canal, per President Trump’s directive. These plans range from enhanced military partnership with Panama to a less likely military seizure of the canal, contingent upon Panamanian cooperation. The administration aims to diminish China’s access to the waterway, a move that Panama and China both deny is necessary. This follows Trump’s assertion of reclaiming the canal, although the specifics remain unclear.
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Following weeks of legal challenges and human rights concerns, Panama released dozens of migrants deported from the U.S., granting them a 30-day departure window with a possible 60-day extension. These individuals, hailing from diverse countries including Afghanistan, Russia, and China, faced dire conditions in a remote Panamanian camp, lacking access to legal counsel and adequate resources. Many expressed their inability to return home due to ongoing conflict or persecution, highlighting the precarious situation they now face. Despite the release, the migrants remain in legal limbo, with limited options and uncertain futures.
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President Mulino strongly denounced President Trump’s claim that the U.S. was “reclaiming” the Panama Canal following the sale of a Chinese-owned port company’s stake to a U.S. consortium. Panama insists the transaction was purely private and that China never held influence over canal operations, rejecting any notion of U.S. “reclaiming” the waterway. Mulino further refuted suggestions of U.S. pressure influencing the sale, emphasizing Panama’s sovereign control over the canal. The $23 billion deal, involving CK Hutchison Holdings and BlackRock, still requires Panamanian government approval.
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Nearly 300 undocumented migrants, deported from the US to Panama, are being held in a luxury hotel under strict guard. While 171 have agreed to return to their home countries, the remaining migrants face an uncertain future, potentially facing transfer to a Darién province camp. The Panamanian government maintains the migrants are in “temporary custody” for their protection, though concerns exist regarding their access to legal counsel and freedom of movement. International organizations like the IOM are providing support, assisting with voluntary repatriation and exploring alternative solutions for those not returning to their origin countries.
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Panama has formally withdrawn from China’s Belt and Road Initiative, with President José Raúl Mulino citing a lack of demonstrable benefits to the country from the 2017 agreement. The decision, announced at a press conference, follows concerns regarding Chinese investment in the Panama Canal. Mulino stated that he instructed Panamanian diplomats in Beijing to provide the required notification. This action comes amidst speculation of US influence.
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Despite a US State Department announcement claiming free transit for US government vessels through the Panama Canal, the Panama Canal Authority denies any toll adjustments. This contradicts earlier statements by Secretary of State Marco Rubio suggesting Panama offered concessions following pressure from President Trump, who has threatened force to secure access. Panama has refuted accusations of Chinese influence over the canal, but withdrew from China’s Belt and Road Initiative to address US concerns. Further talks between the US and Panama are scheduled.
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The Panama Canal Authority (ACP) refutes White House assertions that it has waived transit fees for US government vessels, stating its authority to set tolls remains unchanged. This denial follows a US State Department announcement claiming millions of dollars in annual savings through this purported agreement. The dispute arises amidst broader concerns voiced by US officials regarding China’s influence over the canal and a demand for Panama to address these concerns. The ACP, while committed to dialogue with the US, insists no toll adjustments have been made.
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The State Department asserted that Panama had agreed to waive transit fees for US government vessels through the Panama Canal, a claim Panama immediately denied. Panama’s Canal Authority stated that no fee adjustments had been made and expressed willingness to engage in dialogue with the US. This contradiction follows recent heightened tensions between the US and Panama, stemming from President Trump’s threats to “take back” the canal and concerns over China’s influence. Panama has, however, indicated it will not renew its participation in China’s Belt and Road Initiative.
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The State Department’s announcement that US government vessels can now transit the Panama Canal without paying fees has sparked a flurry of reactions, ranging from celebratory to cynical. The immediate takeaway is a cost savings for the US government, however insignificant the amount might seem in the grand scheme of the national budget.
The actual financial implications are surprisingly minimal. Over the past nine years, the total transit fees for US military vessels amounted to a mere $17 million. This translates to a relatively small annual expense, suggesting that any purported cost savings are negligible when considered against the overall US defense budget.… Continue reading
President Trump threatened “powerful” US action against Panama, vowing to “take back” the Panama Canal due to concerns over China’s influence. Following a meeting between Secretary of State Rubio and Panamanian President Mulino, Panama pledged to end its participation in China’s Belt and Road Initiative and audit a Chinese-linked port company. While Panama affirmed its sovereignty over the canal, Rubio raised concerns about China’s presence, referencing a treaty allowing US intervention in case of operational disruptions. Panama also proposed expanding a US-funded migrant repatriation program.
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John Q. Hosedrinker 
Matt Underwood