Marco Rubio delivered a stark warning to Panama's president on February 2 that Washington would "take measures necessary" if the Central American nation failed to curtail what the US describes as China's growing influence over the Panama Canal.

The newly appointed US Secretary of State's maiden foreign trip was troubled from the beginning, when his aircraft had to abort its first landing attempt at Panama Pacifico Airport due to strong winds, before touching down minutes later. He was received by Panamanian Foreign Minister Javier Martínez-Acha.

During talks in Panama City, Rubio told President José Raúl Mulino that the perceived Chinese presence near the canal – through Hong Kong-based CK Hutchison Holdings' operation of ports at both entrances – represented a threat to the waterway and violated the US-Panama treaty, according to US State Department spokesperson Tammy Bruce.

The diplomatic pressure appeared to yield initial concessions. Mulino announced Panama would not renew its agreement with China's Belt and Road initiative and said he would "study the possibility of terminating it early". He also signalled willingness to review Chinese business interests, including CK Hutchison's 25-year port concession renewed in 2021, and reportedly guaranteed free transit of US warships through the Canal.

"We had a very respectful and cordial meeting, but Panama's sovereignty is not in question," Mulino told reporters.

Panama's government and some experts reject US concerns about Chinese control, noting that the ports are not part of the canal's operations. The key waterway is in fact operated by the Panama Canal Authority, an autonomous agency.

The months-long diplomatic tensions sparked protests in Panama City, where about 200 demonstrators marched with Panamanian flags, shouting "Marco Rubio out of Panama" and "Long live national sovereignty". Some protesters burned a banner bearing images of Trump and Rubio after being stopped short of the presidential palace by riot police.

After first floating the issue in December at a political rally, Trump has taken an increasingly aggressive stance since taking office on January 20. "China's running the Panama Canal. That was not given to China, it was given to Panama - foolishly - but they violated the agreement, and we're going to take it back, or something very powerful is going to happen," the US president told reporters on February 2, though he added he did not think troops would be "necessary".

Statistics show that nearly 75 per cent of cargo through the Panama Canal in the 2024 fiscal year originated from the United States, with 21 per cent from China, followed by Japan and South Korea.

Rubio later toured the Miraflores Locks at sunset with canal administrator Ricaurte Vásquez, who has insisted the waterway will remain in Panama's hands and open to all countries. The Secretary watched from a control tower as vessels transited the locks.

On migration issues, Mulino offered expanded cooperation, proposing the use of an airstrip in Meteti, Darien, to facilitate US deportation flights. This follows a $6mn deal sealed under the Biden administration to assist with migrant expulsions.

The US Special Envoy for Latin America, Mauricio Claver-Carone, attributed the current tensions to former Panamanian president Juan Carlos Varela, who in 2017 switched diplomatic recognition from Taiwan to China and deepened ties with Beijing.

The visit to the Miraflores locks highlighted the canal’s strategic importance to US commerce. During the tour, Rubio was briefed by Edwin Miranda, a canal guide whom he had previously met during a 2018 visit as a senator. The Authority expressed its intention to work with the US Navy to optimise transit priority for American military vessels.

The waterway remains crucial to US-Panama trade relations, with more than 76 per cent of cargo passing through the canal in 2024 having the United States as its origin or destination. Officials noted that the majority of this traffic utilised the Neopanamax locks.

Rubio's six-day regional tour, which includes scheduled stops in El Salvador, Costa Rica, Guatemala and the Dominican Republic, reflects Washington's broader strategy to counter Beijing's growing influence while addressing migration concerns. The trip comes amid a freeze in US foreign assistance, though the State Department said Rubio had approved waivers for certain critical programmes in countries he is visiting.

The diplomatic row comes as Trump has demonstrated his willingness to pressure allies, announcing major tariffs on Canada and Mexico the previous day, prompting retaliatory measures from both nations. After successful talks with Mexican President Claudia Sheinbaum, the US president on February 3 suspended the imposition of levies on Mexico for a month.