The canal remains the crucial link between the Atlantic and Pacific oceans and coasts, with 40 percent of US container traffic going through it.
Trump administration officials said they were blaming not Mulino but previous Panamanian president Juan Carlos Varela, who in 2017 – during Trump’s first term as president – moved to sever ties with Taiwan in favor of China.
“It wasn’t just a diplomatic recognition. He literally opened the floodgates and gave strategic assets throughout the Canal Zone to China,” said Mauricio Claver-Carone, the US special envoy on Latin America.
He charged that Panama unfairly raised costs for US ships while also seeking assistance from the United States for canal upkeep. Panama attributes rising costs to the effects of a drought, exacerbated by climate change.
Trump has quickly made clear he will exercise swift pressure to bend other countries to his will, especially on his signature issue of deporting undocumented immigrants.
On Sunday, he threatened major tariffs against Colombia to force its president to back down after he insisted that repatriated migrants be treated in a more dignified way.
