The U.S. has won a major concession in the Panama Canal, the State Department announced on Wednesday night.
Secretary of State Marco Rubio successfully negotiated a new deal with the nation of Panama that would grant the U.S. the right to pass through the waterway without being charged fees. The move, State said, will save the U.S. government millions of dollars a year.
U.S. government vessels can now transit the Panama Canal without charge fees, saving the U.S. government millions of dollars a year. pic.twitter.com/G4gV2mHu7O
— Department of State (@StateDept) February 6, 2025
Saving millions a year may seem like a drop in the bucket compared to other government expenses – like buying subscriptions to Politico PRO – but it is a major symbolic win as the Panama Canal was a central part of the Trump Administration’s foreign policy focus as he was coming into office.
The Trump team has argued that giving up the important canal was a mistake and that the U.S. had lost strategic footing in doing so. But Trump has remained adamant that the U.S. will regain strategic footing there, even going so far as to say he wanted to take it back. As with most of Trump’s foreign policy, that appeared to have been the starting point of the negotiation, with Rubio securing free transit.
That victory would signal to other powers – especially China, which had gained some political footing in the region – that the U.S. is set to aggressively protect its interests in the western hemisphere. It’s almost as though the Trump administration is walking around with Big Stick Energy*.
*Speaking softly not included.
