President Donald Trump has directed the U.S. military to develop plans for reclaiming the Panama Canal, aiming to reduce China’s influence in the region. The move comes as Trump’s administration argues that Beijing’s growing presence near the canal could pose a threat to American security and trade.
According to reports, U.S. Southern Command has been tasked with formulating a range of strategies. These include working with Panamanian security forces or, if necessary, deploying U.S. troops to take control of the canal. The extent of military involvement will depend on whether Panama complies with Washington’s demands.
Adm. Alvin Holsey, commander of U.S. Southern Command, has already presented initial drafts of these plans to Defense Secretary Pete Hegseth. While officials say an outright takeover of Panama is not the immediate goal, an increased U.S. military presence in the country is seen as a crucial step toward securing control of the canal.
Trump has framed the effort as a corrective action, arguing that the canal was “given away” under former President Jimmy Carter’s administration in a deal that has since been violated. During a recent address to Congress, Trump made his intentions clear. “We didn’t give it to China. We gave it to Panama, and we’re taking it back,” he said.
His administration contends that China’s economic projects near the canal serve not just commercial interests but also Beijing’s long-term military strategy. A 2024 congressional hearing highlighted concerns that Chinese state-owned enterprises have been increasing their footprint in Panama, potentially giving the Chinese Communist Party leverage over one of the world’s most critical trade routes.
A key argument for retaking control of the canal is the risk of Beijing restricting access in the event of a conflict. Trump officials believe a visible U.S. military presence in Panama would serve as a deterrent and reinforce American influence in the region.
Defense officials say discussions are ongoing, with Hegseth scheduled to review the proposed strategies before a diplomatic visit to Panama next month. The situation remains fluid, but Trump’s push for action signals his administration’s broader commitment to countering Chinese power in global trade chokepoints.
