Defense Secretary Pete Hegseth's visit to Panama signals a dramatic shift in U.S. policy toward one of the world's most strategic waterways.

According to Breitbart News, Secretary Hegseth delivered a forceful message during his visit to Panama City on Tuesday, declaring that the United States and Panama would work together to counter China's growing influence over the Panama Canal.

During a ceremony at the Vasco Nuñez de Balboa Naval Base, Hegseth emphasized America's historical connection to the canal and its vital importance to U.S. national security.

The Defense Secretary's remarks highlighted concerns about Chinese companies controlling critical infrastructure near the strategic waterway, which handles approximately 40 percent of U.S. shipping traffic.

Historical significance shapes new policy direction

The Panama Canal's storied past plays a crucial role in current diplomatic tensions. Built by the United States in 1914 at enormous human and financial cost, the canal was transferred to Panamanian control in 1999 following agreements made during the Carter administration. President Trump has specifically highlighted the historical sacrifice, noting that 38,000 workers died during the canal's construction.

The recent push to reassert American influence comes amid growing concerns about China's Belt and Road Initiative in the region. Panama's recent decision not to renew an infrastructure project under this initiative marked a significant victory for U.S. diplomacy.

Secretary of State Marco Rubio's February visit to Panama helped secure this diplomatic win, demonstrating the administration's commitment to countering Chinese influence in the Western Hemisphere.

Strategic partnership strengthens Panama Canal security

Defense Secretary Hegseth shared his vision for the canal's future, stating:

I want to be very clear — 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 through the deterrent power of the strongest, most effective, and most lethal fighting force in the world. We will do this in partnership with Panama. Together we will take back the Panama Canal from China's influence, and we will do this along with other capable like-minded allies and partners. This is what 'peace through strength' looks like.

The commitment to enhanced security cooperation was formalized in a joint statement released by Panamanian President José Raúl Mulino, Panama Canal Authority Administrator Ricaurte Vazquez, and Secretary Hegseth. This agreement acknowledges the special transit rights for U.S. and Panamanian warships established in the 1977 treaty.

Economic implications drive strategic interests

The Panama Canal's economic significance cannot be overstated. Currently facilitating over $250 billion in annual trade, the waterway serves as a crucial link between the Atlantic and Pacific oceans. Approximately 70 percent of vessels passing through the canal are either bound for or departing from U.S. ports.

President Trump addressed these economic considerations during his March Joint Address to Congress, announcing plans for American companies to acquire both ports around the Panama Canal. This move represents a significant step toward achieving greater U.S. control over the strategic waterway.

The administration's focus on the Panama Canal aligns with broader efforts to secure America's southern border and maintain U.S. global supremacy against Chinese competition.

Administration moves forward with strategic realignment

The coordinated visits by Secretary Hegseth and Secretary Rubio demonstrate the priority level assigned to Panama Canal security. These diplomatic efforts have already yielded results, with Panama showing increased willingness to resist Chinese economic influence.

During the 2025 Central America Security Conference, co-hosted by the U.S. and Panama, officials from both nations explored additional ways to strengthen their partnership.

The refurbishment of facilities at the Vasco Nuñez de Balboa Naval Base, supported by the U.S. Army Corps of Engineers, exemplifies this renewed cooperation.

Future of Panama Canal security takes shape

Defense Secretary Pete Hegseth's visit to Panama marked a pivotal moment in U.S. efforts to counter Chinese influence over the Panama Canal. The Trump administration has prioritized reclaiming control over this vital waterway, citing historical American investment and current national security concerns.

Working alongside Panamanian officials, the U.S. government has begun implementing a comprehensive strategy to enhance security cooperation and reduce Chinese economic influence in the region.

These efforts reflect broader administration goals of strengthening Western Hemisphere security and maintaining American global leadership in the face of rising Chinese power.