Trump Administration Requests Military to Explore Options for the Panama Canal, Officials Report

WASHINGTON — The White House has instructed the U.S. military to formulate strategies for bolstering the American troop presence in Panama to fulfill President Trump’s objective of “reclaiming” the Panama Canal, as stated by two U.S. officials knowledgeable about the planning.

In a recent joint address to Congress, Trump proclaimed, “to further enhance our national security, my administration will be reclaiming the Panama Canal.” However, administration officials have yet to clarify what “reclaiming” entails.

U.S. Southern Command is crafting various potential plans, ranging from closer collaboration with the Panamanian military to the less probable scenario of U.S. forces taking control of the Panama Canal by force, according to the officials. The use of military force, the officials noted, hinges on the level of cooperation from the Panamanian military.

The goal of the Trump administration is to amplify the U.S. military presence in Panama to reduce China’s influence there, particularly concerning access to the canal, as indicated by the officials.

Both Panama and China have denied any foreign interference in the 50-mile canal, which is protected under Panama’s Constitution for its neutrality. Chinese officials have accused the U.S. of employing “coercion” to persuade Panamanian officials to impede Chinese aid initiatives.

U.S. officials disclosed to NBC News that Adm. Alvin Holsey, commander of U.S. Southern Command, presented preliminary strategies to Defense Secretary Pete Hegseth this week. Hegseth is anticipated to visit Panama next month.

The officials warned that a U.S. invasion of Panama is improbable and would only be seriously contemplated if a larger American military footprint in Panama does not achieve President Donald Trump’s ambition of reclaiming the waterway.

Neither the Pentagon nor the Panamanian Embassy in Washington responded immediately to requests for comment.

Trump has expressed intentions to restore U.S. ownership of the canal after Panama took control of the area over 25 years ago under a treaty established during the Carter administration.

Privately, Trump has communicated to his advisers that he views a U.S. military presence in Panama and along the canal as essential to this initiative. Furthermore, Trump has made it clear that he expects the visibility of U.S. service members in the canal zone as a display of strength.

Officials in the Trump administration contend that China’s influence near the canal is excessive. They warn that in the event of conflict, Beijing could potentially obstruct American shipping, including military vessels.

During a recent trip to Panama, Secretary of State Marco Rubio communicated to Panamanian President José Raúl Mulino that the “status quo is unacceptable” concerning China’s presence in Panama. Mulino affirmed that the Panamanian government solely manages the canal and denied any concession of operational control to China.

Last month, Chinese Foreign Ministry spokesperson Lin Jian condemned the U.S. after Panama chose not to renew a significant infrastructure agreement with China. Lin stated that China’s investments in Panama are part of its Belt and Road development initiative and “firmly opposes the U.S. disparaging and undermining the Belt and Road cooperation through pressure and coercive tactics.”

Currently, the U.S. military maintains more than 200 troops in Panama, although the number varies as personnel rotate. This includes Special Forces units cooperating with Panamanian forces to safeguard the country against internal threats, insurgencies, or unrest.

Proposed strategies from the administration range from ensuring safe passage for U.S. ships through the canal to restoring complete U.S. ownership and management of the route. Additional options under evaluation include utilizing the U.S. military to secure existing ports in Panama, constructing new ports, or engaging the Army Corps of Engineers to manage the canal’s locks.

There are also plans to potentially establish Army Jungle Schools, or training camps, in Panama, similar to those where U.S. troops were trained in jungle warfare until the canal was officially transferred to Panama in 1999.

Another aspect of the ongoing planning is the possible deployment of U.S. military forces near Panama in the event of regional warfare or threats against the U.S. In such scenarios, the military would work to secure the Panama Canal and inhibit China’s access to this critical route. American officials have cautioned that blocking Chinese transit through the canal would only be considered during wartime.

The Panama Canal is among the world’s busiest waterways, with the majority of cargo transiting through it coming from or going to the U.S. If the canal were to be obstructed, vessels would need to reroute around South America, significantly raising both the cost and duration of each journey.

The U.S. constructed the canal from 1904 to 1914 after an unsuccessful French attempt. In 1977, following extensive protests by Panamanians, President Jimmy Carter ratified a treaty that transferred control of the canal to Panama. In 1989, under the administration of George H.W. Bush, U.S. forces invaded Panama and deposed the nation’s leader, Manuel Noriega, who was later convicted of drug trafficking.

In his recent joint address to Congress, Trump indicated that the U.S. was already taking steps to mitigate Chinese presence in the canal. “Just today, a large American company announced they are purchasing both ports around the Panama Canal and numerous other assets related to the Panama Canal and a couple of other canals.”

The U.S. investment firm BlackRock is involved in a consortium acquiring a 90% stake in the Panama Ports Company, which manages the ports of Balboa and Cristobal at the canal’s Pacific and Atlantic ends. This stake is being purchased from a Hong Kong-based corporation, CK Hutchinson, for $22.8 billion.