U.S. Defense Secretary Pete Hegseth pledged on Tuesday that the United States would work alongside Panama to diminish Chinese influence over the strategically vital Panama Canal. Speaking from a U.S.-funded pier in Panama City during a rare high-level visit, Hegseth emphasized the importance of maintaining the canal’s neutrality and accessibility.
“Together, we will take back the Panama Canal from China’s influence,” Hegseth told Reuters. “China did not build this canal. China does not operate this canal, and China will not weaponize this canal. With Panama in the lead, we will keep the canal secure and available to all nations.”
Hegseth is the first U.S. defense secretary to visit Panama in decades. His trip highlights Washington’s growing concern over China’s expanding economic footprint in Latin America, including Chinese companies’ proposed infrastructure projects near the canal, such as a bridge construction effort.
Roughly 40% of U.S. container traffic—valued at approximately $270 billion annually—passes through the Panama Canal, making it essential not only to global commerce but also to potential U.S. military logistics.
While Hegseth struck a tone of cooperation, former President Donald Trump has taken a more confrontational stance. Trump has falsely claimed that China operates the canal and maintains a military presence there—allegations that Hegseth explicitly dismissed during his visit.
Former U.S. Ambassador to Panama John Feeley criticized Trump’s rhetoric, saying, “What’s not legitimate about the way Trump has gone about this is the bullying tactic… to claim there has been a violation of the neutrality treaty. There hasn’t been.”
Panama’s President Jose Raul Mulino, who met privately with Hegseth, has shown alignment with U.S. policy on multiple fronts. In February, he withdrew Panama from China’s Belt and Road Initiative and has cooperated with the U.S. on immigration enforcement, including accepting deportation flights and helping to manage migrant flows through the Darien Gap.
“Panama is, and will continue to be, Panamanian,” Mulino said, reaffirming his country’s control over the canal.
Hegseth, a military veteran and former Fox News host, praised Mulino as a partner who “understood the threat from China.” His visit follows a U.S.-backed acquisition in which BlackRock took control of key port operations from Hong Kong-based CK Hutchison—a move that Trump has touted as part of his broader effort to “reclaim” the canal.
Experts suggest Panama’s cooperation will be crucial. “This hasn’t traditionally been a winning issue for the U.S. in terms of public diplomacy in Panama,” said Ryan Berg of the Center for Strategic and International Studies. “But with Mulino in office, Washington may have found a stronger ally.”
