U.S. President Donald Trump is turning his attention beyond Venezuela and Greenland to the Panama Canal, a global logistics artery.
On the 20th, local time, Trump did not rule out attempts to regain control of the Panama Canal in a public appearance. A post he uploaded to his social media the day before depicted Panama as if it were already under the U.S. sphere of influence. Inside Panama, there is speculation that the Trump administration, as it did with Venezuela and Greenland, could go beyond mere bluster and move to concrete action.
At an event with reporters marking the first anniversary of his inauguration that day, Trump was asked whether he planned to take back the Panama Canal. Smiling, he said, "That's sort of on the table." The comment formalized that regaining control of the Panama Canal is being considered as one of the policy options. The Wall Street Journal (WSJ) reported that "Trump did not deny the possibility of occupying the Panama Canal."
Earlier, Trump posted a map with the U.S. flag on his social media account. The map showed the Stars and Stripes clearly marked not only over the U.S. mainland but also over Greenland, Canada, Cuba, and Panama. Experts assessed this move as a reinterpretation of the 19th-century "Manifest Destiny" theory that the United States should expand its territory across the continent. Citing experts, the BBC said, "Trump mentioned this concept in his inaugural address," adding, "Now the arrow is pointing past Greenland toward Panama."
Behind Trump's zeroing in on the Panama Canal lies a combination of economic interests and checks on China. The Panama Canal is a vital corridor that handles 40% of U.S. container traffic.
According to the newsweekly Time, Trump has criticized since before his election the decision 25 years ago for the United States to hand over ownership of the canal to Panama. During his first term, he argued that "Panama is imposing excessively high tolls on U.S. ships" and that "Chinese capital has deeply penetrated canal operations, threatening security." In his second term, he has stressed, "Panama has allowed too much influence to China," and "we will take it back."
The Trump administration particularly takes issue with Hong Kong corporations CK Hutchison holding operating rights to the ports at both ends of the Panama Canal. It defines this as an attempt by the Chinese Communist Party to dominate global maritime logistics. NPR reported, "The United States and China clashed at the U.N. Security Council in Aug. last year over the Panama Canal issue," adding, "The United States warned that China threatens global trade security."
Since last year, the Trump administration has pressured the Panamanian government and achieved some visible results. In April last year, the United States signed a new security agreement with Panama. During this process, President Jose Raul Mulino made a series of decisions that effectively recalibrated Panama's China policy.
In 2017, Panama became the first among Latin American countries to sign a memorandum of understanding (MOU) with China and join the Belt and Road Initiative (BRI). Since taking office, the Mulino administration has not formally renewed the MOU and has effectively begun the process of withdrawal. This is interpreted to mean not merely adjusting specific individual projects, but exiting the BRI participation framework itself.
At the same time, the Panamanian government accepted U.S. requests and agreed to a national audit of Hong Kong corporations CK Hutchison, which operates key ports at both ends of the Panama Canal. The audit will be led by the Board of Audit and Inspection of Panama and the relevant ministries. The focus is expected to be on examining how port operations affect the canal's neutrality and global logistics safety.
On the security front, Panama has opened the door to allowing rotational deployments of U.S. troops. U.S. forces will not be permanently stationed in Panama, nor will they establish bases. Instead, under the banner of training, joint operations, and disaster response, limited forces will be deployed on a short-term rotational basis. Although specific numbers have not been disclosed, small deployments in the hundreds are currently being discussed. Given that the Panamanian constitution prohibits the permanent stationing of foreign troops, the move is seen as restoring U.S. security involvement institutionally without crossing legal red lines.
In diplomatic circles, the U.S. approach has been described as "diplomacy with a stick but no carrot." Although Panama has actively accepted U.S. demands, the United States is indifferent to that and keeps asking for more.
Will Freeman, a fellow at the U.S. think tank Council on Foreign Relations (CFR), warned that this coercive approach could become a dangerous gamble that forces Latin American countries to choose between the United States and China. In a report, he assessed, "The Trump administration is leaning on the Monroe Doctrine to drive China out of Latin America." The Monroe Doctrine is a diplomatic principle that rejects European interference in the Americas and emphasizes the United States' exclusive influence.
Panama President Mulino is stressing the canal's neutrality and calling for the defense of sovereignty. But his position is narrowing in the face of U.S. economic retaliation and military pressure. Local outlet Newsroom Panama reported, "Trump regards Greenland and the Panama Canal as strategic imperatives the United States must secure," adding, "The next target after Venezuela is likely to be Panama."
The Panama Canal is one of the largest civil engineering projects in human history, begun by the United States in 1904 and completed in 1914. More than 25,000 people lost their lives building this passage, which the United States controlled until 1999. In an opinion piece for Fox News, Dr. Rick McDaniel called the construction of the Panama Canal "a symbol of the perseverance that shows the United States overcoming the impossible," emphasizing the value of this historical asset.
The international community is on high alert for the fallout from Trump-style territorial expansion policies. Some experts said it is hard to rule out the possibility that Trump could mobilize actual military force or impose strong economic sanctions to wrest canal management rights from the Panamanian government.
Harvard Kennedy School advised in a report that claims by the Trump administration to "take back" the Panama Canal should be treated with caution. Harvard professor Ricardo Hausmann said, "Since the canal's return, Panama has invested close to $6 billion in infrastructure improvements," adding, "Its operational capacity has also been amply proven over decades." He noted, "If the United States tries to overturn past treaties and reclaim control, it could lose international credibility."