President Trump just struck a major blow against Chinese influence in a vital American interest – and made NATO countries angry at the same time. How? By asserting America’s obvious rights over the Panama Canal, and announcing a major new American-led investment in the region.
At a glance:
• President Trump announced a deal where U.S. and Swiss investors will buy Chinese-backed ports at the Panama Canal
• Trump has directed the Pentagon to prepare plans to “take back” the Panama Canal, potentially using military force
• The Panama Canal sees nearly 15,000 ships transit annually, with two-thirds headed to or from the U.S.
• The $22.8 billion deal involves a consortium gaining control of CK Hutchison’s ports
• Panamanian President José Raúl Molina insists the canal remains Panamanian despite U.S. actions
Trump Takes Action to Secure Strategic Waterway
President Donald Trump has made securing the Panama Canal a priority for his administration, announcing a major deal that will place critical port infrastructure under American control. The move comes as part of Trump’s broader strategy to counter Chinese influence in the Western Hemisphere and secure vital shipping lanes for U.S. interests.
“My administration will be reclaiming the Panama Canal, and we’ve already started doing it. Just today, a large American company announced they are buying both ports around the Panama Canal,” declared President Donald Trump in a recent statement that signals a dramatic shift in U.S. policy toward the strategic waterway.
The $22.8 billion deal involves a consortium including U.S. asset manager BlackRock gaining control of an 80% interest in CK Hutchison subsidiary Hutchison Ports and 90% of Panama Ports. This acquisition represents a significant change in the ownership structure of ports that Trump has argued pose a national security threat under Chinese influence. One question, though…BlackRock? Yikes…
Military Options on the Table
Not only is President Trump working on making the region financially controlled by the States, but he has also instructed the Pentagon to develop comprehensive plans regarding the Panama Canal. U.S. Southern Command (SOUTHCOM) is reportedly developing options ranging from cooperation with Panama’s military to more assertive measures to secure American interests in the region.
Secretary of Defense Pete Hegseth supported the President’s position, stating “the right—we retain the right—to do what is necessary to make sure there is free navigation in the Panama Canal.”
The Panama Canal represents a critical artery for global trade, with nearly 15,000 ships transiting annually and two-thirds of that traffic headed to or from the United States. Any disruption to canal operations would have significant implications for the American economy and global trade networks.
Thank you, President Trump, for re-securing the Panama Canal. I started working on that issue in 1999, when I went to the canal to witness the Hutchison Whampoa takeover of the American facilities. https://t.co/MT0jLMwbEq
— J Michael Waller (@JMichaelWaller) March 5, 2025
International Reactions and Historical Context
The U.S. relinquished control of the canal to Panama in 1999 under a treaty negotiated by President Jimmy Carter, a decision many conservatives have long criticized. Trump has directly challenged this arrangement, boldly stating, “We didn’t give it to China. We gave it to Panama and we’re taking it back.”
Chinese officials have pushed back against American assertions of Chinese control over the canal. Chinese Foreign Ministry spokesperson Lin Jian stated, “China supports Panama’s sovereignty over the canal and is committed to maintaining its status as a permanently neutral international waterway,” while also opposing what they called U.S. “smearing and undermining” of Belt and Road cooperation.
The United States has historical precedent for military action in Panama, including the 1989 invasion to capture Manuel Noriega. This history looms large as the administration considers options for securing what Trump has called America’s “economic security” interests in the region.
Panamanian President José Raúl Molina has insisted that “the Panama Canal is not in the process of being reclaimed. The canal is Panamanian and will continue to be Panamanian!” His statement reflects growing tension between Panamanian sovereignty claims and American security concerns.
The decisive action regarding the Panama Canal reflects the administration’s America First approach to foreign policy, prioritizing U.S. security and economic interests over international arrangements that no longer serve American needs. The coming months will reveal how this bold strategy reshapes one of the world’s most critical maritime chokepoints.
