Republican Senators Push Panama to Cut Ties with China As Trump Vows To Take Back The Canal

Republican lawmakers in the U.S. Senate are taking steps to address President Donald Trump's concerns over the operation of the Panama Canal, calling on the country's government to sever its ties with China and Chinese businesses.

Sen. Eric Schmitt (R-Missouri), a staunch Trump supporter, plans to introduce a resolution on Thursday urging Panama to take action in response to what they view as China's growing influence in the region.

The nonbinding resolution, co-sponsored by Sens. Tom Cotton (R-Arkansas), Roger Marshall (R-Kansas), and Katie Boyd Britt (R-Alabama), will not compel any immediate changes, but Schmitt emphasized that the resolution is an opportunity for Panama to act in alignment with U.S. interests. "They've now heard what President Trump has to say, and I hope they hear what the United States Senate has to say," Schmitt told The Washington Post.

During his inauguration speech last Monday, Trump vowed to take back the Panama Canal, saying that the U.S. has "been treated very badly by this foolish gift that should have never been made," referring to the 1977 agreement with the Latin American country that would eventually lead to Panama retaining full control of the canal after 1999.

He has repeatedly voiced his intention to take the Panama Canal back under U.S. control since winning the election. Panamanian president José Raúl Mulino has repeatedly rejected the notion that there is Chinese interference in the Panama Canal. "There is absolutely not any interference" from the country, Mulino said during a press briefing on December 26. "There are no Chinese soldiers in the canal, for the love of God. There is not a single Chinese soldier in the canal," he added.

At the same time, Panama has complained to the United Nations over Trump's "worrying" threat to seize the Panama Canal, even as it launched an audit of the Hong Kong-linked operator of two ports on the interoceanic waterway.

Trump has also criticized Panama for what he described as unfair tolls charged to U.S. ships. The comments evolved into broader claims about China's involvement in the canal, which Trump has suggested could undermine U.S. access and influence. In his inaugural address, Trump criticized the Panama Canal treaties, calling them a "broken promise" and suggesting that China now controls the vital waterway.

Information surrounding China's role in the canal is more nuanced. Hutchinson Port Holdings, a Chinese company, has operated container facilities at both ends of the canal since 1996. However, it does not manage the canal itself, which is overseen by Panama's independent Canal Authority. Toll rates, determined by the authority, are publicly available and apply to all ships regardless of nationality. The fee increases have largely been driven by recent droughts affecting water levels in the region.

Schmitt's resolution expresses concerns over the involvement of Chinese state-owned enterprises in the canal's development, questioning the potential impact on the canal's neutrality and security. The resolution calls for Panama to expel Chinese officials and urges the U.S. to take action through its treaty agreements with Panama. It also recommends increasing U.S. investments in Panama's canal infrastructure to counter Chinese influence.

The push in Congress aligns with broader concerns about U.S.-China competition, with Schmitt describing it as a national security priority. "The 21st century is going to be defined by who wins this competition," he said, referring to China as the U.S.'s "chief adversary."

In addition to GOP-led Senate's efforts, U.S. Secretary of State Marco Rubio is considering including Panama in his first official trip as the country's top diplomat, with the visit potentially happening as early as next week, Politico reported on Wednesday.