- The Trump administration is directing the U.S. military to develop strategies to increase its presence in Panama, to counter China's influence and potentially "reclaiming" control of the Panama Canal. Options range from closer collaboration with Panamanian forces to the unlikely use of military force.
- The Panama Canal, a symbol of U.S. strategic power, was transferred to Panamanian control in 1999 under the Torrijos-Carter Treaties. Trump has criticized this as a "giveaway" and claims the agreement has been violated, framing his efforts as a move to enhance national security.
- The administration views China's investments in Latin America, including near the canal, as a strategic threat. U.S. officials argue that China's presence could disrupt American shipping and provide military advantages in the region.
- The U.S. is considering options such as securing safe passage for U.S. ships, building new ports and potentially restoring total U.S. ownership of the canal. These efforts have faced pushback from Panama and China, with Panama emphasizing the canal's neutrality and China accusing the U.S. of coercion.
- The Panama Canal is a critical global trade route, with most cargo linked to the United States. Disruption of its operations could force ships to take longer, costlier routes, significantly impacting global commerce.
The Trump administration has directed the U.S. military to develop strategies to increase its presence in Panama, with the ultimate goal of "reclaiming" the Panama Canal, according to a new report.
Two U.S. officials familiar with the planning told NBC News that the administration is exploring options ranging from closer collaboration with Panamanian security forces to the unlikely use of military force to seize control of the canal. The move is part of President Donald Trump's broader effort to counter China's growing influence over the critical waterway, which serves as a vital artery for global trade. (Related: Trump's bold gambit: Military options for the Panama Canal and the Shadow of Chinese Influence.)
The Panama Canal, a 50-mile engineering marvel completed by the United States in 1914, has long been a symbol of American ingenuity and strategic power. However, its transfer to Panamanian control in 1999 under a treaty signed by President Jimmy Carter has become a focal point of Trump's critique of past U.S. foreign policy. In a joint address to Congress last week, Trump declared, "To further enhance our national security, my administration will be reclaiming the Panama Canal, and we've already started doing it."
The administration's efforts come amid rising tensions between the U.S. and China, which has invested heavily in infrastructure projects across Latin America as part of its Belt and Road Initiative. U.S. officials argue that China's presence near the canal poses a strategic threat, potentially allowing Beijing to disrupt American shipping in the event of a conflict.
The Panama Canal's history is deeply intertwined with U.S. foreign policy. Constructed at the cost of thousands of lives and billions of dollars, the canal was a cornerstone of American economic and military strategy for much of the 20th century. However, its control became a source of contention as Panamanians demanded sovereignty over the waterway. In 1977, Carter signed the Torrijos-Carter Treaties, which transferred control of the canal to Panama by the end of 1999.
Trump has repeatedly criticized the agreement, calling it a "giveaway" and claiming it was "violated very severely." In his address to Congress, he asserted, "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."
The administration's current focus is on increasing the U.S. military presence in Panama, which currently includes over 200 troops, including Special Forces units. Adm. Alvin Holsey, commander of U.S. Southern Command, presented draft strategies to Defense Secretary Pete Hegseth this week, ahead of Hegseth's planned visit to Panama next month.
Potential strategies and regional tensions
According to officials, the administration is considering a range of options to achieve its goals. These include securing safe passage for U.S. ships through the canal, building new ports in Panama, and even having the Army Corps of Engineers operate the canal's locks. More ambitious plans involve restoring total U.S. ownership of the canal, though officials stress that military force is unlikely unless Panama's security forces refuse to cooperate.
The administration's efforts have sparked pushback from both Panama and China. Panamanian President Jose Raul Mulino has denied ceding control of the canal to China, stating that the waterway is administered solely by Panama. Meanwhile, Chinese officials have accused the U.S. of using "coercion" to pressure Panama into blocking Chinese infrastructure projects.
U.S. Secretary of State Marco Rubio, during a recent visit to Panama, told Mulino that "the status quo is unacceptable" regarding China's presence in the region. However, Mulino reiterated that Panama's Constitution enshrines the canal's neutrality, ensuring it remains open to all nations.
The Panama Canal remains one of the world's most critical trade routes, with the majority of its cargo originating in or destined for the United States. A disruption to its operations would force ships to take longer, costlier routes around South America, significantly impacting global commerce.
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