In an inauguration speech brimming with bold declarations and nationalist fervor, Donald J. Trump, now the 47th president of the United States, set his sights on Panama as a key battleground in his broader vision to restore what he calls “American dominance” in global trade. Claiming that “China is controlling Panama,” Trump issued a pointed rebuke to Beijing while outlining a strategy that ties Panama’s economic and strategic significance directly to the prosperity of U.S. ports, including Miami, the nerve center of America’s trade with Latin America.
Panama as a Flashpoint in U.S.-China Rivalry
“Panama is under the thumb of China,” Trump declared during his inaugural address, pointing to Beijing’s growing influence in the region. “They’ve bought up ports, control critical infrastructure, and are taking what should belong to America. Under my leadership, we will reclaim it.”
Trump’s statement refers to Chinese investments in Panama’s shipping and logistics sectors, including a notable foothold in port operations and trade agreements with the Panamanian government. While his assertion that China “controls” Panama is an exaggeration, experts confirm that Chinese companies have been expanding their reach in the region, capitalizing on the country’s strategic position at the crossroads of global commerce.
The Panama Canal, through which 5% of world trade flows, remains under Panamanian jurisdiction, but Chinese firms have increased their influence through contracts and investments. Trump’s comments suggest his administration may seek to counterbalance this influence by deepening U.S. ties with Panama—potentially through trade incentives or security partnerships.
Miami: Ground Zero for Trade Impacts
For Miami, a city that thrives on its role as a gateway for trade with Latin America, Trump’s Panama policy promises both opportunities and challenges.
The Port of Miami, already a critical hub for exports like electronics, machinery, and agricultural goods, stands to gain if Trump’s administration strengthens trade routes through Panama. However, Trump’s aggressive rhetoric and potential trade restrictions could also create disruptions, particularly for industries dependent on smooth supply chains.
“Miami has always benefited from the flow of goods through the Panama Canal,” said a logistics executive based in the city. “But if Trump’s policies lead to heightened tensions or restrictive tariffs, we could see a bottleneck that slows commerce instead of accelerating it.”
The flow of goods such as consumer electronics, cars, and textiles—key imports for Miami’s economy—could be affected if diplomatic tensions with Panama or trade wars with China escalate. On the other hand, an influx of U.S. investment into Panamanian infrastructure could solidify Miami’s role as a logistical powerhouse, creating jobs and boosting growth in the region.
A Threat of Escalation or Opportunity?
Trump’s rhetoric on Panama has raised alarms among foreign policy experts who fear that tying the nation too closely to anti-China policies could destabilize relations with Central America. Trump’s repeated commitment to “military strength” in the region has fueled speculation about how far his administration might go to counteract Chinese influence.
“Let me be clear: We are not looking for war with Panama,” Trump emphasized later in the day, addressing reporters’ questions about his aggressive tone. “But we will not allow our neighbors to be pawns in a global game controlled by Beijing.”
Still, the specter of increased U.S. military activity near the canal has not been ruled out. Trump’s advisers have hinted at expanding U.S. naval presence in the region as part of a broader strategy to protect “vital trade arteries.”
The “Gulf of America” Initiative
Trump also linked his Panama policy to a larger framework he dubbed the “Gulf of America” initiative, a bold infrastructure and trade project aimed at revitalizing economic corridors from the Gulf Coast to Latin America. Though scant on details, the initiative appears to focus on building resilient trade networks that bypass Chinese-controlled supply chains.
“Panama is the heart of global trade, and Miami is its lifeblood,” Trump said, emphasizing the strategic synergy between the canal and U.S. Gulf and Atlantic ports. “We will make sure every ship, every route, every dollar benefits America first.”
What’s Next for Panama, Miami, and Beyond?
As Trump embarks on his unprecedented second term, his provocative stance on Panama signals an administration ready to confront global adversaries and reinforce economic ties with regional allies. For Miami, the stakes couldn’t be higher: the city stands to gain from increased trade opportunities but faces the risk of economic turbulence if Trump’s policies sour relations or provoke retaliatory measures from China.
“Trump is drawing a line in the sand,” said a political analyst specializing in U.S.-Latin American relations. “The question is whether Panama—and Miami—will thrive under his vision or become casualties of his broader geopolitical ambitions.”
For now, Miami and Panama remain intertwined, their fates shaped by the ever-shifting winds of global power. Whether Trump’s policies can turn those winds in America’s favor, however, remains to be seen.
