Officials confirm the administration is exploring options to counter Chinese influence and secure the vital shipping route.
By yourNEWS Media Newsroom
President Donald Trump has reportedly ordered the U.S. military to develop plans for increasing U.S. troop presence in the Panama Canal, according to NBC News. The U.S. Southern Command is weighing several options, from strengthening diplomatic partnerships with Panama to the potential seizure of the canal, two officials with knowledge of the planning confirmed.
Trump reiterated his commitment to reclaim the canal in his March 6 joint address to Congress, stating his administration would restore American control over the crucial trade route to strengthen national security.
“The Panama Canal was built by Americans for Americans, not for others, but others could use it. But it was built at tremendous cost of American blood and treasure,” Trump said. “It was given away by the Carter administration for $1, but that agreement has been violated very severely. We didn’t give it to China. We gave it to Panama, and we’re taking it back.”
Panama’s Response and Growing U.S.-China Tensions
Panamanian President José Raúl Mulino pushed back against Trump’s remarks, asserting that the canal “belongs to Panama and will continue to belong to Panama.” He dismissed Trump’s claim that the U.S. had merely “conceded” the waterway.
“The canal is not a gift,” Mulino said, making it clear that Panama intends to retain full control.
Meanwhile, Secretary of State Marco Rubio has signaled the administration’s firm stance against Chinese influence in Panama. During a Feb. 2 visit, Rubio stated that the U.S. will not accept the current level of Chinese Communist Party involvement in canal operations.
In response to U.S. diplomatic pressure, Mulino announced that Panama will not renew its participation in China’s Belt and Road Initiative, a massive infrastructure project that the country joined in 2017.
Chinese Influence Over the Panama Canal
Since the Carter administration transferred the canal to Panama in 1977, China has significantly expanded its foothold in the region.
- China’s Landbridge Group acquired Panama’s largest Atlantic port, Margarita Island, in 2016 for $900 million.
- Hong Kong-based Hutchison Ports received a 25-year no-bid renewal to operate two ports on both sides of the canal, reinforcing China’s strategic position in the region.
- American investment firm BlackRock recently reached a $22.8 billion agreement to purchase the ports from Hutchison Ports, signaling a shift in control.
China has denied any efforts to interfere in Panama’s sovereignty, instead accusing the U.S. of using coercion to block Chinese investment in the canal, according to the Associated Press.
What’s Next?
While the use of military force to take over the canal is considered unlikely, U.S. officials say troop deployments could hinge on Panama’s continued cooperation. The Pentagon, U.S. Southern Command, and Panama Canal Authority have not commented on the reported military planning efforts.
As tensions between Washington and Beijing escalate, Trump’s push to reassert U.S. dominance over the Panama Canal marks a major strategic shift in the region—one that could reshape global trade dynamics and security policy in the years to come.