- The Trump administration is countering China’s growing influence over the Panama Canal to protect U.S. trade and military interests.
- Defense Secretary Hegseth announced expanded U.S.-Panama military and economic deals to challenge China’s strategic foothold.
- The canal is critical for U.S. shipping, with 75% of traffic linked to American ports, making it a geopolitical priority.
- New agreements ensure U.S. military priority passage and reopen Fort Sherman as a joint base to deter Chinese influence.
- The move is part of Trump’s broader strategy to push back against China’s expansion in Latin America.
The Trump administration is taking aggressive steps to counter China’s growing influence over the Panama Canal, a critical global shipping artery that serves as a lifeline for American trade. Defense Secretary Pete Hegseth announced expanded military and economic agreements with Panama, signaling a direct challenge to what he called the “maligned influence” of the communist Chinese government in the Western Hemisphere. The move comes as Beijing increasingly invests in ports and infrastructure near the canal, raising alarms in Washington about strategic vulnerabilities.
Speaking to media, Hegseth framed the initiative as a fulfillment of President Trump’s longstanding promise to secure U.S. interests in the region. “President Trump said at a State of the Union address, China has too much influence over the Panama Canal, and America is gonna take it back,” said Hegseth. “That’s exactly what I was charged to do.” The administration’s strategy hinges on strengthening Panama’s ability to resist Chinese pressure while ensuring American military and commercial vessels maintain priority access.
Strategic importance of the canal
The Panama Canal serves as one of the world’s most vital maritime corridors, with roughly 75% of its shipping traffic involving vessels heading to or from U.S. ports. Any disruption could severely impact American supply chains, energy imports, and military logistics. Recognizing this, the Trump administration has prioritized blocking Chinese attempts to establish a strategic foothold in Panama, where Beijing has heavily invested in port operations and infrastructure projects in recent years.
“Chinese influence cannot control our own backyard, especially a critical waterway — key terrain — like the Panama Canal,” Hegseth emphasized. “If we can’t use that waterway in a key contingency, China has an advantage.”
New agreements to secure U.S. interests
To counter Beijing’s encroachment, the U.S. recently signed two major agreements with Panamanian officials. The first ensures American military and auxiliary ships receive free and prioritized passage through the canal, while the second — a memorandum of understanding — lays the groundwork for expanded U.S.-Panama defense cooperation. This includes reopening Fort Sherman, a former U.S. military base, as a joint training site to deter Chinese influence.
“Fort Sherman will reopen jointly with the Panamanians and is going to have a larger U.S. presence at the invitation of Panama, working with them to keep the communist Chinese out,” Hegseth confirmed. The U.S. has already deployed two guided-missile cruisers, a Coast Guard cutter, four F-18 fighter jets, and over 1,000 troops to the region, signaling a firm commitment to regional security.
A broader push against Chinese expansion
The administration’s actions align with President Trump’s broader campaign to confront China’s global ambitions, particularly in Latin America, where Beijing has expanded its economic and political reach. Some analysts argue that previous U.S. administrations neglected the strategic threat posed by Chinese investments in critical infrastructure. “We’ve been asleep at the wheel,” Hegseth acknowledged. “President Trump has said we need to be serious about our own backyard.”
Panama’s government, led by President Enrique Molina, has welcomed the U.S. partnership. Hegseth praised Molina as a “pro-Trump, pro-America” leader willing to stand up to Chinese pressure. Still, skeptics question whether ownership of the canal would solve the issue of Chinese influence, especially since the U.S. already maintains a military presence nearby and controls significant shipping operations.
The Trump administration’s latest moves underscore a clear-eyed approach to countering China’s ambitions in the Americas, ensuring that a critical waterway remains under stable, U.S.-aligned control. While critics debate whether reclaiming ownership of the canal is necessary, officials argue that reinforcing partnerships and military readiness is crucial to preventing China from gaining an upper hand. As Hegseth put it, “President Trump says not on our watch, and we are fighting back.”
Whether these measures will fully neutralize Beijing’s influence remains to be seen, but it is clear that the Panama Canal is no longer just a trade route; it’s a geopolitical battleground where America is drawing the line.
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