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US defense secretary Pete Hegseth pledged on Tuesday that the United States would work with Panama to reduce China’s influence over the Panama Canal. His remarks came during a rare visit to the country as he stood at a US-funded pier in Panama City.
“Together, we will take back the Panama Canal from China’s influence,” Hegseth told news agency Reuters. “China did not build this canal. China does not operate this canal and China will not weaponize this canal. Together with Panama in the lead, we will keep the canal secure and available for all nations.”
Hegseth is the first US defense secretary to visit Panama in decades. His trip comes amid growing American concerns about Chinese commercial projects in the region, including plans by Chinese companies to build a bridge over the canal. More than 40% of US container traffic—worth roughly $270 billion annually—passes through the canal, which is vital for global trade and potential US military operations.
While Hegseth emphasized partnership with Panama, former President Donald Trump has gone further, even suggesting military force to “reclaim” the canal. Trump has falsely claimed that China operates the canal and has soldiers present—allegations Hegseth himself dismissed.
Former US Ambassador to Panama John Feeley also criticized Trump’s approach, saying, “What’s not legitimate about the way Trump has gone about this is the bullying tactic that he’s used, which is to claim that there has been a violation of the neutrality treaty. There hasn’t been.”
President Jose Raul Mulino, who met privately with Hegseth, has been aligned with the US on several fronts. In February, he pulled Panama out of China’s Belt and Road Initiative and has supported US immigration enforcement by accepting deportation flights and working to reduce migrant flows through the Darien jungle.
“Panama is, and will continue to be, Panamanian,” Mulino said, defending his country’s stewardship of the canal.
Hegseth, a military veteran and former Fox News host, praised Mulino’s stance, calling him a partner who “understood the threat from China.” His visit follows a US-led deal in which BlackRock acquired major port operations from Hong Kong’s CK Hutchison, a move Trump hailed as an effort to “reclaim” the canal.
Analysts say Panama’s cooperation is key. “On the whole, this hasn’t been a winning issue for the United States 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 an ally.
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