Defense Secretary Pete Hegseth announced a new era of U.S.-Panama cooperation aimed at securing the Panama Canal from growing Chinese influence. Speaking Tuesday during a visit to Panama, Hegseth declared the canal must remain free and secure, rejecting China’s involvement in one of the world’s most vital shipping routes.
“Together with Panama in the lead, we will keep the canal secure and available for all nations through the deterrent power of the strongest, most effective and most lethal fighting force in the world,” Hegseth stated.
This marked a clear change in tone from President Donald Trump’s previous threats to retake control of the canal by force. Trump had blamed China for manipulating operations and claimed U.S. vessels were being unfairly overcharged. During his January inaugural address, he asserted, “We’re taking it back.”
But recent developments have led to a strategic recalibration. In February, Panama officially withdrew from China’s Belt and Road Initiative. The following month, the Hong Kong-based company that operated two major canal ports announced plans to divest, selling its shares to a U.S.-led investment group led by BlackRock.
Hegseth directly countered China’s growing presence in the region. “China did not build this canal. China does not operate this canal and China will not weaponize this canal,” he said. He emphasized that while Panama holds sovereignty, the U.S. is reinforcing its role as a security partner to ensure the canal remains open and neutral.
Secretary of State Marco Rubio, in one of his first overseas visits, also traveled to Panama to reinforce this message of shared interests and deterrence. The administration views Panama’s pivot away from Beijing as a key victory in a broader effort to push back on China’s global maritime and infrastructure ambitions.
“Together we will take back the Panama Canal from China’s influence and we will do this along with other capable, like-minded allies and partners,” Hegseth added. “This is what peace through strength looks like.”
The White House has not officially commented on whether Hegseth’s remarks represent a full shift in administration policy, but the evolving U.S.-Panama partnership reflects a broader strategic approach: counter China’s economic aggression not with force, but through strengthened regional alliances and targeted economic influence.
