Diplomatic Tensions Rise
President asserts the will reclaim control of the , citing concerns over Chinese influence and unfair treatment of U.S. vessels, sparking international and diplomatic backlash.
Panamanian President and reject Trump's claims, emphasizing Panama's sovereignty and the canal's neutrality, with Mulino stating no foreign nation interferes with canal operations.
Economic and Strategic Implications
downgrades Panama's bonds, linking the decision to concerns over potential U.S. repossession of the canal, while analysts speculate on Trump's possible punitive measures and the impact on U.S.-China trade dynamics.
The canal's strategic importance is highlighted by its role in global trade, with Trump's assertions of Chinese control overplayed, as the canal remains under Panamanian management with significant international maritime traffic.