Pete Hegseth: ‘We Will Take Back the Panama Canal from China’s Influence’

Defense Secretary Pete Hegseth on Tuesday in Panama delivered a clear message: the United States and Panama would take back the Panama Canal from China’s influence.

“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,” Hegseth said.

“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,” he said.

Panama has denied the canal falling under China’s influence, but Hegseth said China-based companies continue to control critical infrastructure in the area, giving China the potential to conduct surveillance across Panama. “As President Donald Trump has pointed out, that situation is not acceptable,” he said.

Hegseth delivered his remarks at a ceremony unveiling a pier at the Vasco Nuñez de Balboa Naval Base that was refurbished with support from the U.S. Army Corps of Engineers. The base was once known as the Rodman Naval Station, a former U.S. base before it was handed over to Panama in 1999.

The Panama Canal — which the U.S. built in 1914 but President Jimmy Carter agreed to give to Panama in 1979 — has become a major focus early on in the Trump administration’s foreign policy. Trump has prioritized shoring up security on the southern border and in the Western hemisphere while stopping China from its long-term goal of replacing the U.S. as the world’s top superpower.

Trump said during his Joint Address to Congress in March:

To further enhance our national security, my administration will be reclaiming the Panama Canal, and we’ve already started doing it. Just today, a large American company announced they are buying both ports around the Panama Canal and lots of other things having to do with the Panama Canal and a couple of other canals.

The Panama Canal was built by Americans for Americans, not for others, but others could use it. But it was built at tremendous cost of American blood and treasure. Thirty-eight thousand workers died building the Panama Canal. They died of malaria. They died of snake bites and mosquitoes. Not a nice place to work. They paid them very highly to go there, knowing there was a 25 percent chance that they would die. The most expensive project, also, that was ever built in our country’s history, if you bring it up to modern-day costs.

It was given away by the Carter administration for $1, but that agreement has been violated very severely. We didn’t give it to China. We gave it to Panama, and we’re taking it back.

Hegseth’s visit to Panama is the second time a top Trump administration official has visited the country in just three months. Secretary of State Marco Rubio came to Panama in February, which helped convince Panama not to renew an infrastructure project under China’s Belt and Road Initiative. China’s BRI initiative, which seeks to build closer ties to countries via infrastructure projects, has often resulted in the country accepting a loan under conditions that later entrap them in steep debt to China, in what foreign policy experts have dubbed “debt trap diplomacy.”

During Hegseth’s trip, he met with the president of Panama José Raúl Mulino, Minister of Public Security Frank Abrego, and other top Panamanian officials, and attended the 2025 Central America Security Conference, c0-hosted by the U.S. and Panama.

On Tuesday evening, Mulino, Panama Canal Authority Administrator Ricaurte Vazquez, and Hegseth released a statement that recognized the “robust foundation and legacy” of the U.S.-Panama security partnership and said they were committed to strengthening bilateral Canal security cooperation.

The statement acknowledged that the Panama Canal Treaty of 1977 guaranteed the “expedited transit of warships and auxiliary vessels of the Republic of Panama and the United States,” and said both countries would work on a mechanism to compensate for the payment of tolls and charges and enhance bilateral security cooperation.

Hegseth touted the U.S. relationship with Panama, pledging it would “continue to grow in the months and years ahead.”

But he also concluded his remarks with the history of America’s role in building the Panama Canal in the early 1900s:

You see, the first time a sitting American president set foot outside of the United States, the first time, was to see the construction of the Panama Canal. President Teddy Roosevelt spent three days here in November of 1906. He was here both to inspect the project and to emphasize how important it was to our security and our prosperity.

After his visit, Roosevelt described the canal as one of the great and giant feats of the ages. Nearly 120 years later, this canal remains a wonder of the world. And like President Roosevelt, President Trump today recognizes the canal’s rightful place as the center of our shared hemisphere. It connects two continents and two oceans, transporting over $250 billion in goods per year and 40 percent of US shipping.

Seventy percent of the ships that pass through this canal are going to or from US ports. It saves nearly 8,000 miles for shipping traveling between our coasts. Almost 100 US military vessels each year transit the canal. This miraculous canal shows what our two nations can achieve together.

“We worked together to build this canal. Workers from both our countries gave their lives during its construction. We are proud of our shared history and excited for our shared future. Returning Pier 3 to service today shows how we will continue to work together to secure and preserve that legacy. God bless. Thank you very much,” Hegseth concluded.

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