Washington is once again embroiled in controversy after President Donald Trump ordered military planners to prepare options to seize the Panama Canal, emphasizing his administration's strategic interests amid rising tensions with China over its influence in the region.
On March 13, 2025, reports emerged from multiple sources indicating Trump directed U.S. military forces to formulate plans to secure access to this critically important trade route. Nearly 25 years after the United States handed over control of the Panama Canal to Panama, Trump's recent statements have reignited discussions around potential military action, as the route is viewed as fundamental for American shipping and trade.
"The canal belongs to the Panamanians and will remain so," said Panamanian Foreign Minister Javier Martinez-Acha, reaffirming his country's sovereignty amid fears of external interventions. Both Panama and China have vehemently denied any foreign interference, complicate the narrative purveyed by Washington.
According to sources within the Pentagon, the military's Southern Command has developed various strategies ranging from collaborating with Panamanian security forces to possible military intervention, including the use of American troops to forcibly reclaim the canal if cooperation from Panama is deemed unsatisfactory. These discussions were reportedly triggered by Trump's growing frustration over China's purported control over the canal and Panama’s alleged failure to meet contractual obligations established during the U.S.-Panama Treaty of 1979.
Adm. Alvin Holsey, commander of the U.S. Southern Command, presented these options to Defense Secretary Pete Hegseth during a recent meeting. Hegseth is expected to conduct a diplomatic visit to Panama next month, where he will likely face questions about the U.S. intentions and regional stability.
"This administration will be reclaiming the Panama Canal, and we’ve already started doing it," Trump said during his address to Congress last week, emphasizing his commitment to regaining full control over the canal.
Negotiations around the Panama Canal have been complex ever since the U.S. agreed to transfer control to Panama at the end of 1999. The treaty grants both countries the right to take unilateral action to protect the canal's neutrality, though any military move would pose significant international legal challenges.
Despite these challenges, the Trump administration's rhetoric has included claims about the potential for China to leverage its influence over the canal—assertions lacking concrete evidence but emphasized repeatedly by Trump. "We cannot allow the canal to fall under illegal influence, such as from China!" he has insisted.
On the logistical front, U.S. military sources reported discussions about various courses of action. These range from bolstering partnerships with Panamanian forces to outright military interventions to secure control over shipping routes and ports.
"Officials allege the memo from the White House calls on the Pentagon to provide credible military options to safeguard U.S. access to the canal," stated one official, speaking anonymously due to the sensitive nature of the information.
Meanwhile, reactions from regional partners and observers remain mixed. Some warn against potential fallout from any escalation, emphasizing the need for diplomacy over militarized conflicts. Historical tensions from previous U.S. interventions still simmer across Latin America.
Besides the geopolitical concerns tied to the canal, financial maneuvers have also surfaced—most recently highlighted by the sale of the majority of CK Hutchison Holdings' global port operations to BlackRock for $22.8 billion. This transaction was viewed as a way to mitigate potential backlash against U.S. interests amid concerns about Chinese ownership of key ports.
The dynamics around the Panama Canal exemplify the broader strategic competition between the United States and China, particularly as both nations vie for influence over key commercial routes. With U.S. military forces drawing up plans for potential action, the question remains: will political rhetoric translate to open conflict? Historians and analysts worry about the military posturing and the ramifications it could entail for Caribbean and Latin American stability.
For now, the situation continues to unravel, with the stakes weighing heavily on future U.S.-Panama relations. The upcoming diplomatic mission by the U.S. defense chief could prove pivotal for defining pathways to either reconciliation or conflict as both players navigate the treacherous geopolitical terrain.
With military actions hanging heavy over the discussions, the world watches nervously as the Trump administration navigates this complex issue, keeping the emphasis on ‘America First’ strategy alive as say politicians and pundits alike.