U.S. Secretary of State Marco Rubio’s inaugural foreign trip commenced with a meeting with Panama’s President José Raúl Mulino, amidst escalating pressures from President Donald Trump on allies. Trump’s recent tariffs on Canada and Mexico set the stage for Rubio’s diplomatic discussions in Panama, focusing on shared interests such as migration and drug trafficking. However, the contentious issue of the Panama Canal loomed large, with Trump advocating for its return to U.S. control despite strong opposition from Panamanian leaders.

Rubio’s mission to curb illegal immigration aligns with Trump’s priorities, but the push to reclaim the Panama Canal underscores broader geopolitical concerns, particularly in countering China’s influence in the region. Rubio highlighted the vulnerability of the canal under Chinese control, emphasizing the need for strategic reassessment to safeguard American interests.

While Mulino adamantly rejected negotiations over canal ownership, speculations arose regarding a potential compromise involving the transfer of operations from Hutchison Ports, a China-based company, to American or European entities. Rubio’s subsequent visits to El Salvador, Costa Rica, Guatemala, and the Dominican Republic underscore the broader implications of U.S. foreign policy shifts, including a freeze in foreign assistance.

Rubio’s diplomatic tour signals a complex interplay of economic, security, and geopolitical interests in the region, underscoring the challenges and opportunities for U.S. engagement in Latin America amidst shifting power dynamics and strategic imperatives.