A major shift in U.S. foreign policy emerges as the Trump administration contemplates increasing American presence in Panama.
According to NBC News, the White House has instructed the U.S. military to develop strategies for expanding American control over the Panama Canal, with options ranging from enhanced security partnerships to potential military intervention.
The directive follows President Donald Trump's recent joint address to Congress, where he announced his administration's intention to "reclaim" the strategic waterway. Defense Secretary Pete Hegseth is scheduled to visit Panama next month to assess the situation firsthand while U.S. Southern Command prepares various operational scenarios.
Military presence and strategic planning unfolds
U.S. Southern Command commander Admiral Alvin Holsey has presented initial strategic proposals to Defense Secretary Hegseth. The plans encompass multiple approaches, from strengthening existing partnerships with Panamanian security forces to more aggressive measures.
Currently, over 200 U.S. troops maintain a rotating presence in Panama, including Special Forces units collaborating with local forces. The military is considering several expansion options, including establishing Army Jungle Schools and increasing port security operations.
The administration's primary concern centers on China's growing influence in the region. Trump has privately emphasized to advisers the importance of maintaining a visible U.S. military presence in the canal zone as a show of force.
Chinese influence sparks diplomatic tensions
Secretary of State Marco Rubio expressed strong concerns during his recent visit to Panama. President José Raúl Mulino responded by affirming Panama's sole authority over canal operations.
Chinese officials have pushed back against U.S. pressure, accusing Washington of using coercive tactics to obstruct Belt and Road development initiatives. The tension escalated after Panama declined to renew key infrastructure agreements with China.
Former Southern Command commander General Laura Richardson had previously warned Congress about China's strategic positioning. She emphasized how Chinese investments could potentially serve dual civilian and military purposes.
Strategic waterway faces uncertain future
The U.S. constructed the Panama Canal between 1904 and 1914, maintaining control until the Carter administration negotiated its transfer to Panama. Retired General Richardson provided this assessment to the House Armed Services Committee:
The PRC messages its investments as peaceful, but in fact, many serve as points of future multi-domain access for the PLA and strategic naval choke points. In Panama, PRC-controlled state-owned enterprises, SOEs, continue to bid on projects related to the Panama Canal — a global strategic choke point.
Recent developments include BlackRock's participation in acquiring a 90% stake in the Panama Ports Company, which operates crucial ports at both ends of the canal. This $22.8 billion transaction involves purchasing holdings from a Hong Kong-based firm.
Trump highlighted this development in his address to Congress, stating:
Just today, a large American company announced they are buying both ports around the Panama Canal and lots of other things having to do with the Panama Canal and a couple of other canals.
Stakes rise as superpowers clash over strategic passage
The Trump administration has directed military planners to develop options for increasing U.S. control over the Panama Canal, triggering diplomatic tensions with Panama and China. The White House's directive encompasses various approaches, from enhanced security partnerships to potential military intervention, though officials emphasize that force would only be considered as a last resort. The situation continues to evolve as Defense Secretary Hegseth prepares for his upcoming visit to Panama while regional powers closely monitor developments surrounding this crucial maritime chokepoint.
