President Donald Trump has directed the U.S. military to develop strategies for regaining control of the Panama Canal, aiming to reduce China’s growing presence near this vital trade route. Sources say the plans, led by U.S. Southern Command, range from working alongside Panama’s forces to using military might if the Central American nation resists. The move reflects Trump’s focus on national security and his concerns over Beijing’s regional influence.
The canal, built with American funds and handed over to Panama in 1999, has become a flashpoint in U.S.-China tensions. Trump recently told Congress, “It was given away by the Carter administration for $1, but that agreement has been violated very severely.” He stressed that the U.S. did not intend for China to gain a foothold there, adding, “We’re taking it back.” Administration officials argue that Chinese state-owned companies bidding on canal projects could threaten American shipping, especially in a conflict.
Adm. Alvin Holsey, head of U.S. Southern Command, has already shared initial proposals with Defense Secretary Pete Hegseth. These drafts explore options like boosting U.S. troop visibility along the canal as a show of strength. Taking over Panama entirely remains a possibility, though insiders say it’s a last resort if other efforts fail to meet Trump’s goals. Hegseth is expected to review these plans before a diplomatic trip to Panama next month.
Trump’s push stems from worries about China’s long-term strategy. Last year, Gen. Laura Richardson warned the House Armed Services Committee that Beijing uses economic projects to secure military advantages. She noted that Chinese firms near the canal represent “strategic naval chokepoints” for the People’s Liberation Army, posing risks to U.S. interests.
Panama and China have dismissed claims of foreign meddling in canal operations, casting doubt on Washington’s stance. Still, the Trump team sees the waterway as crucial to American trade and defense, especially since a Chinese closure could disrupt U.S. military and commercial ships.
Analysts say this approach highlights Trump’s willingness to blend diplomacy with hard power. Allies, however, question whether escalating military presence could strain relations in the region.
Details remain vague, but the canal’s role as a global shipping hub keeps it central to U.S. strategic planning as Trump’s administration weighs its next steps.
