U.S. Defense Secretary Pete Hegseth has secured a crucial agreement with Panama to ensure that American vessels receive priority and no-cost transit through the strategic Panama Canal.
Since its construction by the United States in the early 1900s, the Panama Canal has long stood as a vital conduit for global maritime trade.
For decades, the Canal was under American control until it was ceded to Panama.
More recently, China’s investments in infrastructure related to the canal have spurred concerns over the Chinese Communist Party’s growing influence across the critical waterway.
The canal facilitates roughly 40% of U.S. maritime commerce.
Amidst rising concerns over China’s footprints, the Trump administration made reducing Chinese dominance over the canal a high priority.
In a significant diplomatic triumph earlier this year, Secretary of State Marco Rubio convinced Panama to withdraw from the Belt and Road Initiative.
This move was seen as a victory in curtailing China’s economic reach in the region.
In March, a significant shift occurred when CK Hutchinson, a company based in Hong Kong, divested two ports at the canal, Breitbart reported.
These valuable assets were acquired by a consortium led by BlackRock, effectively transferring control back to U.S. interests.
Although China attempted to hinder this transaction by launching an investigation, the sale stood as a strategic win for America.
Hegseth traveled to Panama City recently, arriving on a Monday night to engage in crucial discussions about ensuring American naval passage through the canal.
His itinerary included discussions with Panama’s President José Raúl Mulino, meetings with various officials, and site visits to key naval and military locations.
On Wednesday, during the 2025 Central American Security Conference, Hegseth announced the successful agreement for the “first and free” passage of U.S. vessels.
This arrangement further underscores a growing collaboration between the U.S. and Panama, solidified by a Memorandum of Understanding aimed at enhancing joint security.
Despite a backlash from China, which accused the U.S. of employing underhanded tactics, Panama has continued to strengthen ties with the United States.
A senior defense official commended the strategic alignment in countering Chinese influence, emphasizing that the efforts are part of President Trump’s broader strategy for regional cooperation.
The significance of this agreement extends beyond mere logistics.
By ensuring that American ships have an uninterrupted route through the Panama Canal, the U.S. bolsters its geopolitical and economic leverage.
Enhanced cooperation is expected, with increased U.S. troop presence and bolstered regional security measures.
In the face of potential Chinese retaliation, Secretary Hegseth remained unfazed.
“I’m not concerned about reprisals,” he noted, highlighting a focus on national interests and a “peace through strength” philosophy.
These developments point toward a concerted effort to focus on American interests and uphold President Trump’s strategic visions.
A high-ranking defense official emphasized that the action against Chinese influence in the Americas visually represents the intention of the U.S.
It aligns with the wider strategy to counteract Chinese encroachments globally.
This deliberation is part of an ongoing discussion about the viability of alliances with China.
Moreover, the intervention of President Trump proved crucial from the outset.
A senior defense official remarked that Trump’s leadership has resonated well in negotiations.
These discussions focused on rebuilding strong alliances and securing American geopolitical positions.
Hegseth himself praised Panama’s efforts and friendly reception during his visit.
“This trip not only met but exceeded our expectations,” he expressed.
This statement highlights the significant collaborative spirit shared with Panama.
Historically rooted and geopolitical considerations have propelled the U.S. to redefine its interactions regarding the Panama Canal.
By successfully securing priority access for naval ships, the collaboration highlights strategies that will potentially serve as a blueprint for future actions in other regions.
READ MORE – Trump Humiliates CNN Reporter During White House Presser: ‘You Have No Credibility’
