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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President Trump threatened “powerful” US action against Panama over China’s influence near the Panama Canal, vowing to “take it back.” Following a meeting between US Secretary of State Rubio and Panamanian President Mulino, Panama agreed to end its participation in China’s Belt and Road Initiative and is auditing a Chinese-linked port company. Mulino asserted Panama’s sovereignty over the canal, while also expressing willingness to increase US investment and collaborate on migrant repatriation, with the US covering all costs. The 1977 treaty allows US intervention if the canal’s operation is disrupted, though Mulino downplayed the risk of US military action.
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The escalating tensions surrounding the Panama Canal and the potential for US intervention are painting a grim picture, with the phrase “there will be many casualties” echoing ominously through the corridors of power. While not uttered by Marco Rubio, the former Panamanian president’s warning underscores the very real possibility of widespread devastation should a conflict erupt. The gravity of the situation stems from the confluence of several factors, creating a volatile mix ripe for miscalculation and unintended consequences.
The prospect of a US military action, fueled by a desire to curb China’s growing influence and reaffirm American dominance, directly threatens Panama’s sovereignty.… Continue reading
John Q. Hosedrinker 
Matt Underwood