Trump’s Panama Ocean Club project is a window into his tariff strategy
A towering hotel-condo complex nestled on a palm-studded beachfront, the Trump Ocean Club International Hotel and Tower Panama is a stark contrast to the other buildings in the region.
Located in Punta Pacifica, an affluent neighborhood of Panama City, the building embodies the aesthetic of Trump-branded properties: gleaming, gold, and glamorous. The Trump Organization inaugurated the hotel in 2011 in partnership with local developers, but it was just one of many ventures the company pursued in the Central American country.
Between the early 2000s and the 2010s, Donald Trump’s companies were involved in at least a dozen real estate deals in Panama, according to news reports and licensing agreements. While his business ventures in the country did not generate particularly strong media interest at the time, they have become a subject of renewed focus amid the current trade war between the US and China, and evolving tensions between the US and Russia.
As President Joe Biden struggles to define a cohesive strategy for the Western Hemisphere, and as his administration contends with increasingly aggressive moves by Russia and China in the region, observers are wondering whether Trump’s past business dealings could inform his tariff decisions.
“I think it tells you part of the equation, but I don’t think it’s the only thing,” said Kenneth Rapoza, an economist who studied at Harvard University and is the author of the book “Panama Money: How Capitalism and Spies Forged a Nation Together.”
“Trump cares about his businesses, of course, but there is also a part of him that wants to be a tough guy, a strongman, and wants to be seen as such,” Rapoza added. “Some of these moves are purely political, like when he pulled out of the [Trans-Pacific Partnership] trade deal and threatened to withdraw from NAFTA. It’s about making deals, but it’s also about the optics of it all.”
As president, Trump took an aggressive stance on trade with both China and Mexico, slapping tariffs on imports and alleging that both countries engaged in unfair trade practices. His approach led to retaliatory measures and aggravated already-tense relations between the US and its two significant trading partners. While economists and researchers disagree about the impact of Trump’s trade policies on jobs and wages in the US, data shows that his actions certainly affected businesses and consumers, amplifying inflation and resulting in company layoffs.
As Biden navigates the consequences of Trump’s trade wars, he must also consider geopolitical challenges in the hemisphere. Researchers note that China has been active in Latin America and the Caribbean as it seeks to expand its influence. In Panama, Beijing has inked deals for infrastructure and trade projects worth billions of dollars as part of its Belt and Road Initiative. And then there’s Russia: Trump’s relations with Moscow posed a geopolitical conundrum, especially after the US intelligence community concluded that Russia had interfered in the 2016 US presidential election to help Trump win. As president, Trump praised Russian President Vladimir Putin and tried to downplay the findings of the US intelligence community.
“Panama is key for China because it’s a hub of trade and commerce, but also because it’s a gateway to South America,” said Margaret Myers, director of the Latin America and Caribbean program at the Center for Strategic and International Studies. “And Russia is also interested in increased engagement with Panama.”
Researchers at the CSIS have created a database of Chinese investment projects in Panama and other countries in the region. The database shows that between 2016 and 2020, Panama received more than $2.6 billion worth of investments from Chinese companies, most of which were in transportation and logistics, followed by financial services, and real estate. In 2019, for instance, the children’s charity of Chinese businessman Jack Ma, founder of the e-commerce giant Alibaba, donated $1.9 million to three Panamanian schools in a deal facilitated by the country’s president at the time, Laurentino Cortizo.
Cortizo, who won the presidential election on a platform of reducing inequality and combating corruption, has maintained relatively good relations with China, but in early 2022, he criticized Beijing for “unfair” trade practices. Meanwhile, Panama’s relations with the US have been somewhat strained in recent years after the US government imposed sanctions on Panamanian politicians and others over allegations of corruption. In April 2022, however, the US government agreed to end its sanctions against former Panamanian President Ricardo Martinelli, who had been accused of conspiring to launder millions of dollars in corrupt proceeds. The decision was met with frustration from activists and officials in Panama who had been conducting their own investigations of Martinelli.
As China and Russia strengthen their presence in the region, some observers are wondering whether Trump’s past business ventures in Panama could inform his — and now, Biden’s — approach to the country. In 2018, Trump’s administration levied tariffs on steel and aluminum imports from Panama, as well as from Argentina, Brazil, and South Korea. The decision came amid a weekslong standoff with China and threats of retaliatory measures from the Chinese government. It was also around the same time that the US pulled out of the TPP, a trade deal Trump criticized for not including Mexico and Canada, and threatened to withdraw from NAFTA, which ultimately remained in place with some tweaks.
“I think it is a factor,” said Joseph Humire, executive director of the Center for a Secure Free Society, a think tank focused on security and democracy in the Western Hemisphere. Humire argued that Trump’s business dealings in Panama could indicate a broader strategy in the region. “I think that the administration understands that if you want to reach a modus vivendi with China and also with Russia, you can’t ignore the region,” he said. “You can’t ignore Latin America and the Caribbean, and that’s why they’re putting emphasis on it.”
But others aren’t so sure. Paulina Escudé, an associate professor of professional practice at the Columbia University School of International and Public Affairs, isn’t convinced that Trump’s business dealings in the region shaped his policies. “I think it’s a stretch,” she said, arguing that Trump’s approach to foreign policy in the hemisphere was more influenced by his ideological alignment with conservative thinkers such as John Bolton.
As Biden navigates increasingly complex relationships with both China and Russia, and tries to formulate a cohesive strategy for the hemisphere, he may face increasing pressure to address Trump’s business ventures and their potential implications for US policy. In the meantime, as tensions simmer and tariffs continue to be levied, Trump’s tower in Panama stands as a symbol of his risk-taking business strategy and his unconventional approach to diplomacy.
Der Spieler, den man für den letzten Moment des Spiels hoffen wollte, konnte nicht mehr zum Einsatz kommen. Der NBA-Star LeBron James war bereits in der vorletzten Minute ausgespannt und kam zu einem schweren Verletzungsschock. Der Schutz des Teams war auf einmal nicht mehr da, und Oklahoma City Thunder-Korbinian Häscher konnte sich so seinen Spagat zu einem Monsterdunk zulegen. Doch auch hier kommt der Schock: Der Lakers gegen Thunder wurde mit einer Unentschieden-Serie von 16 Spieltagen anfangen. Das ist ein Hinweis auf das Problem, was LA bald zu verlieren droht. Das Highlight: Korbinian Häschers Monsterdunk im letzten Spielzeiten.
