President Donald Trump has ordered military officials to draft plans aimed at regaining control of the Panama Canal, arguing that China’s growing presence in the region could pose a threat to national security.
The U.S. Southern Command has been assigned the task of developing multiple approaches to address the situation. Officials are reportedly weighing a range of options, from strengthening cooperation with Panamanian authorities to deploying military forces if necessary. The administration maintains that Panama’s willingness to work with the U.S. will determine the next steps.
Adm. Alvin Holsey, who leads U.S. Southern Command, has already shared initial recommendations with Defense Secretary Pete Hegseth. Reports indicate that these plans include increasing the number of U.S. military personnel in the area as a way to prevent further Chinese influence.
Trump has long criticized the agreement that resulted in the U.S. handing over control of the canal to Panama in 1999, calling it a mistake that has weakened American influence over a vital trade route. He recently told Congress, “We didn’t give it to China. We gave it to Panama, and we’re taking it back.”
Military officials and policymakers have raised alarms about Beijing’s involvement in projects connected to the canal, particularly its investments in Panamanian infrastructure. Some argue that these efforts could give China undue control over one of the world’s most strategically significant waterways.
Trump has privately expressed a strong preference for maintaining an American presence at the canal, believing that a visible U.S. force would send a strong message to China. His administration sees this as part of a broader strategy to counter China’s ambitions in key global shipping routes.
Hegseth is set to review the military proposals before heading to Panama for discussions with local leaders. The next steps will depend on how the Panamanian government responds to Washington’s concerns.
