Trump Moves To Reclaim Panama Canal As China’s Influence Grows
President Donald Trump has directed the U.S. military to develop strategies for regaining control of the Panama Canal, arguing that China’s expanding influence in the region threatens American security and trade interests.
The U.S. Southern Command has been tasked with drafting options to reestablish a U.S. presence along the canal. These proposals range from diplomatic cooperation with Panama’s government to military intervention if necessary. Officials have emphasized that any decision will depend on Panama’s willingness to comply with U.S. demands.
Adm. Alvin Holsey, who leads U.S. Southern Command, has already presented initial plans to Defense Secretary Pete Hegseth. These proposals reportedly include increasing the presence of U.S. forces in Panama as a means of securing the canal’s operations. Trump’s administration believes such a move would serve as a warning to China and reinforce American influence over a key trade route.
Trump has framed the initiative as an effort to correct past mistakes, criticizing the agreement brokered by former President Jimmy Carter that transferred control of the canal to Panama. Speaking before Congress, Trump made his position clear: “We didn’t give it to China. We gave it to Panama, and we’re taking it back.”
Concerns over Beijing’s role in the region have been growing. U.S. military officials have warned that Chinese state-owned companies continue to invest in projects connected to the canal, potentially giving the Chinese Communist Party influence over the strategic passage. Some in Washington fear that if tensions rise, China could restrict U.S. access to the canal, disrupting military and commercial shipping.
Trump has privately insisted that an American military presence along the canal is essential for preventing such a scenario. The administration is weighing its next steps, with Hegseth set to review the proposals ahead of planned talks with Panamanian officials next month.
The Panama Canal remains one of the most vital waterways for global trade, handling a significant share of U.S. shipping. Analysts say China’s continued expansion in the region has fueled growing concern among U.S. policymakers.
