The White House has directed the US military to draft plans for increasing the American troop presence in Panama as part of President Donald Trump’s goal of “reclaiming” the Panama Canal, according to a report. The move is reportedly aimed at countering China’s influence in the region and ensuring US control over the strategic waterway.
During a recent joint address to Congress, Trump announced his administration’s intent to “reclaim” the canal but did not specify what that would entail. Since then, US Southern Command has been working on various proposals, ranging from closer collaboration with Panamanian security forces to, in a less likely scenario, a potential military takeover of the canal, the report said.
The Trump administration believes an increased US military presence in Panama would diminish China’s growing influence, particularly in areas surrounding the canal.
Both Panama and China have denied that Beijing holds any operational control over the 50-mile passage, which remains under Panama’s administration per the 1977 treaty signed by then-President Jimmy Carter. However, American officials have expressed concerns that Chinese-backed infrastructure projects could be used for military purposes in the future.
According to the report, US Southern Command chief Adm. Alvin Holsey has already presented draft strategies to Defence Secretary Pete Hegseth, who is expected to visit Panama next month.
Among the options under discussion are securing existing ports, building new ones, deploying US military personnel to safeguard shipping routes, and even reopening US Army jungle warfare training schools that were shut down when Panama took full control of the canal in 1999.
While an outright military invasion remains highly unlikely, officials quoted in the report said the possibility would only be considered if diplomatic and strategic efforts failed to meet Trump’s objective of reestablishing US authority over the canal.
Trump has privately told advisers that he sees an American military presence in Panama as a critical step in achieving that goal. He has also insisted that US service members should be visibly stationed in the canal zone as a show of force.
Secretary of State Marco Rubio, who visited Panama last month, reportedly told Panamanian President Jos Raul Mulino that the US would not tolerate China’s presence in the region. However, Mulino has repeatedly dismissed claims that Panama has ceded any control over the canal to Beijing.
The increased military focus on Panama comes amid broader US efforts to curb China’s global economic expansion, particularly through its Belt and Road Initiative.
Last year, then-head of US Southern Command Gen. Laura Richardson warned Congress that China’s investments in strategic locations like the Panama Canal could serve dual purposes, providing Beijing with both commercial and military access.
Currently, the US military maintains a fluctuating presence of around 200 troops in Panama, with some Special Forces units working alongside Panamanian forces on security operations.
According to the report, the administration is also considering positioning US forces in the region as a precautionary measure in case of a larger conflict. Officials said the US would only seek to block Chinese access to the canal in the event of a war.
Trump’s push to regain influence over the canal has already led to economic shifts in the region. Earlier this month, a Hong Kong-based company agreed to sell its majority stake in the Panama Ports Company, which operates key terminals on both ends of the canal, to a group of firms that includes US investment giant BlackRock. The USD 22.8 billion deal still requires Panamanian government approval.
Despite Trump’s strong rhetoric on reclaiming the canal, Panamanian officials have resisted any suggestion that US forces will have an increased role in the canal’s operation. President Mulino has dismissed the idea of foreign interference, calling claims of Chinese military control “nonsense”.
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