President Donald Trump announced on Thursday that the United States is regaining strategic control over the Panama Canal, asserting that the area had previously fallen under significant Chinese influence during past administrations. "We've deployed a large number of troops to Panama," Trump declared, stating, "We're reclaiming areas we once had but lost, and now they're back in our hands."
These remarks were made during a cabinet meeting where Defense Secretary Pete Hegseth provided insights into a recent visit to Panama alongside the U.S. Southern Command. "We were at the Panama Canal with Southern Command. Command ships, troops, F-18s... And they've signed some historic agreements, including one with the Panama Canal Authority. A framework for the U.S. to pass first and free through the canal," Hegseth elaborated. He also mentioned a memorandum of understanding signed with Panama’s security minister to allow U.S. military presence in the region.
Among the points discussed was the reactivation of military space at Fort Sherman, a former U.S. base on the isthmus, which is now being repurposed along with a naval and air station, according to Hegseth. "The goal is to secure the Panama Canal from Chinese influence," the official stressed.
Hegseth seized the opportunity to blame previous administrations, such as Barack Obama's, for "allowing" Chinese interests to infiltrate the area. "Now we have the chance to completely expel them," he asserted, noting that current Panamanian President José Raúl Mulino showed a favorable stance towards military cooperation with the U.S. and rejecting Beijing's influence. "They want the Chinese communists out," he stated.
Before returning to the White House as President-elect, Trump had already emphasized his intent to regain control over the Panama Canal, an issue that sparked controversy during his presidential campaign. At that time, Trump accused the Panamanian government of imposing excessive fees on U.S. ships using this crucial navigation route between the Atlantic and Pacific Oceans and claimed China had taken a dominant role in its management.
Once in the Oval Office, the Republican reiterated his intention to reclaim the Canal, warning that if not, "something very big is going to happen." His comments coincided with Secretary of State Marco Rubio's official visit to Panama in February.
Following that visit, the Panamanian government, led by José Raúl Mulino, announced it would not renew its participation in the Belt and Road Initiative, China's global infrastructure project launched in 2013. Panama had been the first Latin American country to join the plan in 2017, seeking to attract investments in ports, transportation, and energy.
"It's a huge step forward for a free Panama Canal," Rubio declared on social media, attributing Panama's decision to President Trump's "leadership." Rubio also warned that the involvement of Chinese companies in port projects could violate the canal's neutrality treaty, prompting a response from Washington.
As a gesture of alignment with the U.S., President Mulino pledged to review contracts awarded to Chinese firms and revealed that audits of their operations are underway.
In recent days, trade tensions between the U.S. and China have escalated sharply due to a series of tariff hikes and retaliatory threats, causing global concern. Trump has increased tariffs on Chinese products to a total of 145%, as reported by EFE. This rise includes a recent jump from 84% to 125%, plus an additional 20% tariff related to fentanyl trafficking. The White House clarified that the initial 125% figure did not include this last tariff, leading to public confusion until corrected.
Moreover, Trump suspended a universal 10% tax for all U.S. trade partners except China, deepening the economic rift between the two powers. In response, China imposed 84% tariffs on U.S. goods and stated it would not yield to pressure. The Chinese government condemned these actions, labeling them "economic harassment" and warning that threats are not the appropriate way to resolve trade disputes.
U.S. Strategic Moves in the Panama Canal
What steps has the U.S. taken to regain control over the Panama Canal?
The U.S. has deployed troops to Panama, signed agreements with the Panama Canal Authority for priority passage, and established a military presence in the region to counter Chinese influence.
How has Panama responded to U.S. actions regarding the Canal?
Panama has shown support by not renewing its participation in China's Belt and Road Initiative and is reviewing contracts awarded to Chinese companies, aligning more closely with U.S. interests.
What are the implications of the U.S. and China's trade tensions on the global stage?
The escalating tariffs between the U.S. and China have increased global economic uncertainty and concern, impacting international trade dynamics significantly.