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Trump’s bold gambit: Military options for the Panama Canal and the Shadow of Chinese Influence

By willowt // 2025-03-14

• President Trump has directed the Pentagon to develop "credible military options" to secure U.S. access to the Panama Canal, citing concerns over China's growing influence in the region. This includes potential strategies ranging from collaboration with Panamanian forces to the extreme option of seizing the canal by force.
• The Trump administration is alarmed by China’s economic investments in Panama, particularly under its Belt and Road Initiative (BRI). There are fears that these investments could provide China with strategic military leverage, including access to critical naval choke points.
• Panamanian officials have rejected claims of foreign interference, asserting that the canal is part of Panama’s “inalienable patrimony.” However, under U.S. pressure, Panama recently declined to renew its 2017 agreements with China, a move criticized by Beijing as coercive.
• The Panama Canal was transferred to Panama in 1999 under the Torrijos-Carter Treaties. The Trump administration argues that a stronger U.S. military presence is needed to counterbalance China’s influence and ensure the canal remains open to American shipping.
• The administration is exploring options to increase U.S. military presence in Panama, including reopening Army Jungle Schools and using the Army Corps of Engineers to operate the canal’s locks.

The Panama Canal, a linchpin of global trade and a symbol of American ingenuity, has once again become a flashpoint in U.S. foreign policy. According to recent reports from Reuters, CNN and NBC, President Donald Trump has directed the Pentagon to develop “credible military options” to secure U.S. access to the canal, citing concerns over China’s growing influence in the region. This directive, outlined in an Interim National Defense Strategic Guidance memo, has reignited debates over America’s role in the Western Hemisphere and the strategic importance of the canal in an era of great-power competition. The Panama Canal, a 50-mile waterway connecting the Atlantic and Pacific oceans, has been under Panamanian control since 1999, following the Torrijos-Carter Treaties. These agreements, signed by President Jimmy Carter, ensured the canal’s neutrality and open access to all nations. However, President Trump has repeatedly criticized the arrangement, calling the fees charged to U.S. vessels “ridiculous” and expressing concerns over China’s alleged encroachment. “Provide credible military options to ensure fair and unfettered U.S. military and commercial access to the Panama Canal,” one directive in the memo reportedly stated. U.S. Southern Command is already exploring a range of strategies, from closer collaboration with Panamanian security forces to the more drastic option of seizing the canal by force. While officials have described military intervention as a “less likely” scenario, the fact that it is even being considered underscores the high stakes involved.

China’s growing footprint

The Trump administration’s focus on the Panama Canal is driven by fears that China could exploit its economic investments in the region to gain strategic leverage. Chinese state-owned enterprises have been active in Panama, particularly under Beijing’s Belt and Road Initiative (BRI). In 2017, Panama signed agreements with China to participate in the BRI, raising alarms in Washington. Retired Army General Laura Richardson, former commander of U.S. Southern Command, warned Congress last year that China’s investments in Panama and other Latin American countries could serve as “dual-use sites and facilities” for military purposes. “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,” she testified. Panamanian officials have vehemently denied any foreign interference in the canal’s operations. President José Raúl Mulino has called the canal part of Panama’s “inalienable patrimony” and dismissed claims of Chinese control as baseless. However, under pressure from the Trump administration, Panama recently declined to renew its 2017 agreements with China, a move that Beijing has criticized as coercive. The Panama Canal has long been a symbol of American power and influence. Constructed by the United States between 1904 and 1914, the canal was a monumental engineering achievement that solidified America’s status as a global power. For much of the 20th century, the canal was under U.S. control, serving as a critical artery for military and commercial shipping. The decision to transfer control of the canal to Panama in 1999 was controversial at the time, with critics arguing that it would weaken America’s strategic position. Today, those concerns have resurfaced in the context of China’s rise. The Trump administration has argued that a larger U.S. military presence in Panama is necessary to counterbalance Beijing’s influence and ensure the canal remains open to American shipping, especially in the event of a conflict. Secretary of State Marco Rubio has been at the forefront of these efforts, delivering a blunt message to Panamanian officials during a visit earlier this year. “The status quo is unacceptable,” Rubio reportedly told President Mulino, emphasizing the need to curb China’s presence in the region.

What’s next?

The Trump administration’s plans for the Panama Canal remain fluid, with options ranging from increased military cooperation with Panama to the more extreme measure of seizing the canal by force. While the latter scenario is unlikely, the mere suggestion has already strained U.S.-Panamanian relations and drawn criticism from Beijing. For now, the focus appears to be on increasing the U.S. military presence in Panama and securing American access to the canal. The Pentagon is reportedly considering reopening Army Jungle Schools in Panama, reviving a legacy of U.S. military training in the region. Additionally, discussions are underway about using the Army Corps of Engineers to operate the canal’s locks or building new ports to enhance U.S. influence. As the Trump administration pushes forward with its plans, the Panama Canal remains a potent symbol of America’s past and a critical asset in its future. Whether through diplomacy or force, the stakes could not be higher. In the words of President Trump, “all options are on the table” to protect U.S. interests in this vital waterway. The world will be watching as this high-stakes drama unfolds, with the Panama Canal once again at the center of global geopolitics. Sources include: RT.com NBCNews.com TheDailyBeast.com

Donald Trump China national security politics pentagon global trade conspiracy White House big government globalism panic chaos dangerous geopolitics rational progress military options Panama Canal supply chain Belt and Road initiative