At first glance, Donald Trump’s statements may seem outlandish or detached from reality. Yet, they reveal a distinct negotiation style characteristic of the man. We have seen this before—whether in his remarks about Palestine, the annexation of Canada, the occupation of the Panama Canal, the purchase of Greenland, or even the seizure of Gaza. These shocking declarations, delivered without hesitation, are not mere offhand remarks but rather calculated manoeuvres designed to exert pressure and force concessions from adversaries. Trump, whose reputation as a businessman preceded his foray into politics, understands the power of provocative tactics in achieving his objectives. In the case of the Panama Canal, this strategy seems to be bearing fruit, especially with Panama’s recent withdrawal from China’s Belt and Road Initiative.
A seasoned corporate strategist before entering the White House, Trump has long mastered the art of unsettling his opponents through audacious rhetoric. In 2018, he threatened hefty tariffs on China as part of the escalating trade war, a move that ultimately culminated in a trade agreement favourable to the United States. Similarly, his negotiations with North Korea followed the same playbook—Trump spoke of unleashing “fire and fury” upon the regime before sitting down at the negotiating table with Kim Jong Un. Though seemingly reckless, these declarations were, in fact, components of a broader strategy designed to create leverage.
With the Panama Canal, Trump appears to be employing the same methodology. This vital waterway, linking the Atlantic and Pacific Oceans, serves as one of the world’s most crucial maritime trade routes, facilitating approximately 6% of global commerce. Control over the canal was formally transferred from the United States to Panama in 1999 after decades of diplomatic negotiations and international pressure. Any suggestion of reclaiming American authority over the canal would thus constitute a violation of Panama’s sovereignty and an affront to international law. However, Trump, ever the businessman, understands that such rhetoric generates controversy, which in turn creates openings for new negotiations.
Meanwhile, Panama recently announced its withdrawal from China’s Belt and Road Initiative, the ambitious global infrastructure project launched by Beijing to bolster trade and connectivity. Panama’s initial decision to join in 2017 was unexpected, as it became the first Latin American nation to sign onto the initiative. However, economic and political pressures—both internal and external—appear to have influenced its reversal, with U.S. influence playing no small role in the decision.
China has expressed strong disapproval of Panama’s move. The Chinese Ministry of Foreign Affairs issued a statement revealing that Assistant Foreign Minister Zhao Zhi Yuan met with Panama’s ambassador to China, voicing his country’s deep dissatisfaction. Beijing, the statement read, “deeply regrets” Panama’s decision, arguing that it does not align with the nation’s fundamental interests. China further urged Panama to “make the right choice” in light of long-term bilateral relations and the welfare of both nations’ peoples.
The Belt and Road Initiative, a cornerstone of President Xi Jinping’s strategy to expand China’s global influence, revolves around the construction of ports, highways, and railways, particularly in developing nations. This grand vision is integral to China’s efforts to secure supply chains and bolster its economic and political reach worldwide.
Panama’s withdrawal from the initiative came only days after a visit from U.S. Secretary of State Marco Rubio, who travelled to the country as part of Washington’s broader strategy to counter China’s growing foothold in the region. The move underscores the extent to which American pressure shapes the political calculus of smaller nations, particularly in Latin America—a region Washington has long regarded as its strategic backyard.
Ultimately, Trump’s rhetoric surrounding the Panama Canal and Panama’s departure from China’s Belt and Road Initiative reflect the ongoing geopolitical contest between the United States and China. Washington seeks to reassert dominance in Latin America, while Beijing strives to expand its economic alliances. These developments place Panama in a precarious position, forcing it to navigate between competing global powers while safeguarding its national interests. At the same time, China’s reaction underscores Beijing’s sensitivity to any erosion of its international influence, particularly in strategically vital locations such as the Panama Canal.
Through his unorthodox negotiation style, Trump once again demonstrates his ability to manufacture pressure to achieve his aims. His statements may seem irrational, but they are, in truth, carefully calculated elements of a grander strategy—one designed to bolster American supremacy in an era of fierce competition among the world’s great powers.
Here in the Middle East, we keenly recognize this man’s negotiation style and perceive his true intentions behind his audacious remarks about seizing Gaza and relocating Palestinians to Egypt and Jordan—an idea he knows is impossible, not least because the Palestinians would never accept it. Such statements are not mere rhetoric but calculated manoeuvres, hinting at a deeper, undisclosed agenda. As a businessman, he undoubtedly has a grander scheme in mind—one that time will soon unveil. The coming days will reveal all.
Dr. Hatem Sadek – Professor at Helwan University
