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Trump Administration Eyes Military Role in Panama Canal Amid Rising Tensions with China

The U.S. explores military strategies and corporate acquisitions to counter China's influence near the critical waterway.

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A cargo ship transits through Panama Canal Cocoli locks in Panama City on February 21, 2025.
U.S. Secretary of State Marco Rubio (fourth from the left) talks to Panama Canal Authority Administrator Ricaurte Vásquez Morales (second from the left) during a tour at the Miraflores locks of the Panama Canal in Panama City on February 2, 2025.

Overview

  • President Trump has directed the U.S. military to develop plans for increasing its presence in Panama, including potential partnerships with the Panamanian military or more aggressive measures.
  • The Trump administration's goal is to diminish China's influence near the Panama Canal, citing concerns over its strategic importance for global trade and U.S. security.
  • BlackRock, a major U.S. asset management firm, has acquired key ports on both sides of the canal as part of a $22.8 billion deal, consolidating control over global infrastructure assets.
  • Panama and China deny U.S. accusations of foreign interference in the canal, while Trump has framed the canal as critical to U.S. dominance in the face of China's Belt and Road Initiative
  • The U.S. military presence in Panama could expand significantly, with strategies ranging from securing canal operations to preparing for potential regional conflicts.