Former President Donald Trump has once again raised eyebrows with his latest comments about the Panama Canal. On Sunday, he warned of “powerful” U.S. action if the canal isn’t returned to American control, citing concerns over China’s growing presence in the region.

“China is running the Panama Canal, which was foolishly given to Panama,” Trump told reporters. “They’ve violated the agreement, and we’re going to take it back—or something very powerful will happen.”

This statement comes amid escalating tensions between the U.S. and Panama over the canal, a vital waterway for global trade. The U.S. handed control of the canal to Panama in 1999 under a treaty that allows American military intervention if the canal’s operations are threatened. Today, more cargo passes through the canal than ever before.

Recently, Secretary of State Marco Rubio met with Panama’s President Raúl Mulino to address Washington’s concerns. While Mulino reiterated that Panama’s sovereignty over the canal is non-negotiable, he assured the U.S. that Panama would not renew a 2017 agreement with China’s Belt and Road Initiative. He also hinted that the partnership could end sooner than expected.

Mulino emphasized Panama’s interest in strengthening ties with the U.S., particularly in infrastructure projects. “This visit opens the door to build new relations and increase U.S. investments in Panama,” he said.

However, the diplomatic row has sparked worries about China’s influence in the region. Panamanian authorities are currently auditing a Chinese-linked company operating terminals near the canal. Mulino noted that no conclusions would be made until the audit is complete.

Meanwhile, Rubio hinted that the U.S. might take steps to protect its rights under the 1977 treaty, though Mulino downplayed the likelihood of military intervention. “I don’t think there’s a real risk of the U.S. using force,” he said.

The Panama Canal remains a critical global trade route, and Trump’s latest remarks add a layer of uncertainty to an already complex situation. Whether this rhetoric will lead to action—or just remain a headline-grabbing threat—remains to be seen.