U.S. Defense Secretary Pete Hegseth is making a rare high-profile visit to Panama this week, arriving Tuesday to inspect the strategic Panama Canal just weeks after former President Donald Trump stirred controversy by threatening to reclaim control of the waterway.
This marks the first visit by a Pentagon chief to the Central American nation in decades and comes at a particularly sensitive time. Panama is under growing scrutiny from Washington over China's expanding economic footprint near the canal — a crucial artery for global and U.S. maritime trade.
Hegseth's trip follows unconfirmed reports that the Trump administration has asked the military to explore ways to ensure uninterrupted American access to the canal, which was constructed by the U.S. in the early 20th century and officially transferred to Panamanian control in 1999.
On arrival, Hegseth was welcomed by Panama’s Public Security Minister Frank Abrego and held private discussions with President Jose Raul Mulino and other senior leaders. While he made no public comments, the political overtones of the visit were clear — particularly in light of Trump’s aggressive rhetoric, which has sparked concern in Panama and beyond.
“The visit carries serious implications for the U.S.-Panama security dynamic,” said Ryan Berg, head of the Americas Program at the Center for Strategic and International Studies. “And from a diplomatic standpoint, past U.S. messaging on the canal hasn’t exactly won hearts in Panama.”
Nonetheless, analysts say Panama’s new president has shown alignment with Washington on key security issues. Earlier this year, Mulino formally withdrew Panama from China’s Belt and Road Initiative and has supported Trump-aligned immigration policies — including accepting deportation flights and helping control migration through the perilous Darién Gap.
Hegseth, a staunch supporter of Trump’s hardline border and security stance, has previously authorized troop deployments to the U.S.-Mexico border and facilitated deportation operations using U.S. military aircraft.
Strategic Concerns Behind the Visit
Trump has claimed — without evidence — that China has taken operational control of the canal and even stationed military personnel there. While those allegations have been widely debunked, experts say the sheer scale of Chinese commercial activity in Panama poses genuine security challenges.
Beijing’s presence includes plans for a major canal-spanning bridge and other infrastructure developments that U.S. officials worry could facilitate surveillance or other intelligence operations.
In a move widely seen as countering that influence, U.S. investment giant BlackRock recently spearheaded a deal to acquire the ports business of Hong Kong’s CK Hutchison, which includes terminals on both ends of the canal. Trump hailed the acquisition as an American "reclamation" of the canal — a comment that Beijing dismissed, with China’s regulator launching an antitrust probe into the transaction.
Military analysts underscore the canal’s strategic importance in a potential conflict in the Indo-Pacific. The waterway would be vital for U.S. Navy vessels transitioning between oceans. Even without obstructing transit, Chinese intelligence-gathering capabilities in the area could put U.S. naval operations at a disadvantage.
However, former U.S. Ambassador to Panama John Feeley pushed back against Trump’s framing of the situation as a violation of U.S.-Panama agreements. “There’s no breach of the neutrality treaty,” he said. “What’s problematic is the bullying tone — not the facts.”
Panamanian President Mulino has staunchly defended his country’s stewardship of the canal, describing it as a pillar of international trade — including for the U.S. — and affirming it “is and will remain under Panamanian control.”
Today, the canal handles over 40% of U.S. container shipping — valued at around $270 billion annually — and remains a vital artery through which two-thirds of all ships transiting daily in the Western Hemisphere pass.