Trump Revives Push for Greater U.S. Influence Over Panama Canal Amid Ongoing Strategic Maneuvering

Washington, D.C. – January 20, 2026

President Donald Trump has once again placed the Panama Canal in the spotlight, signaling that efforts to "reclaim" or significantly enhance American control over the vital waterway remain very much active. In recent remarks, the president suggested that regaining a stronger grip on the canal is "sort of on the table," refusing to fully dismiss the possibility when pressed by reporters.

The comments come as the administration continues to frame the issue through the lens of national security and countering foreign influence—particularly from China—in the Western Hemisphere. Trump has long argued that Panama has violated the spirit of the 1977 Torrijos-Carter Treaties, which transferred control of the canal to Panama in 1999, by allowing excessive fees for U.S. shipping and permitting undue Chinese involvement in surrounding infrastructure.

A Year of Pressure and Partial Wins

The canal saga reignited in late 2024 and early 2025, when then-President-elect Trump repeatedly threatened to "take back" the canal, citing "ridiculous" tolls and alleged Chinese dominance. He refused to rule out military options, prompting the Pentagon to develop contingency plans ranging from increased U.S. troop rotations and closer security cooperation with Panama to more extreme scenarios involving direct intervention.

Panama's government, led by President José Raúl Mulino, firmly rejected any sovereignty threats, insisting the canal "is and will remain Panamanian." Diplomatic tensions peaked in early 2025, with Trump claiming in his inaugural address and subsequent statements that the U.S. had "foolishly" given away the canal and that China was effectively operating it—a charge Panama and Beijing denied.

By mid-2025, the administration secured notable concessions. Panama withdrew from China's Belt and Road Initiative, agreed to enhanced U.S. military access for training and rotations (without permanent bases), and facilitated a major port deal. A Hong Kong-based conglomerate's long-held concessions on key ports at both ends of the canal were targeted for transfer to a U.S.-led group including BlackRock and MSC, a move Trump hailed as proof that "we've already started" reclaiming influence.

Current Status and Renewed Focus

As of early 2026, the canal remains fully under Panamanian administration, with no outright U.S. takeover. Mulino declared in his New Year's address that the bilateral "crisis" had ended, crediting restored trust and joint cooperation. However, recent events—including U.S. actions in Venezuela and broader hemispheric assertiveness—have revived speculation about the canal's role in Trump's "America First" vision for the region.

Prediction markets reflect growing trader interest, with odds rising on potential further U.S. moves before 2029. Analysts note that while direct military seizure appears unlikely given international backlash and Panama's firm stance, the administration may pursue economic leverage, additional security pacts, or pressure to limit foreign investments near the canal zone.

The Panama Canal handles roughly 5% of global maritime trade and about 40% of U.S. container traffic, making it a critical chokepoint. Trump's renewed rhetoric underscores his view of the waterway as essential to countering rival powers and securing American dominance in the Americas.

Panama has not commented on today's developments, but officials have historically emphasized the canal's neutrality and responsible management. The White House did not immediately provide further details on next steps.

For now, the issue simmers as a symbol of Trump's broader push to reshape U.S. influence in Latin America and beyond. Whether it escalates or resolves through negotiation remains one of the key foreign policy questions of 2026.

17GEN4.com