Trump and his team are right to recognize Panama’s strategic importance, but they are wrong in how they are approaching the issue. During his inaugural address in January, President Trump proclaimed that “China is operating the Panama Canal” and promised that the United States would be “taking it back.

The Panama Canal's water levels have been dwindling, and this shift will have significant economic consequences for the region. To combat the change, the Panama government approved the Rio Indio Reservoir Project. The plan could guarantee water supply to approximately 50% of the country's population but will also displace many Panamanians.