Trump, Hegseth Strike Major Panama Canal Deal

The U.S. has struck a major agreement with Panama granting its warships toll-free, priority access through the Panama Canal. The move marks a significant strategic shift away from Chinese influence in the region.

Key Facts:

U.S. Defense Secretary Pete Hegseth announced a new framework granting U.S. warships “first and free” passage through the Panama Canal.
The agreement follows prior denials by Panama’s President José Raúl Mulino that any such deal existed.
The U.S. aims to reduce Chinese influence in the region, citing CK Hutchison’s control over key port infrastructure in Panama.
A $19 billion sale of 43 ports, including two in Panama, from CK Hutchison to BlackRock is under scrutiny from China.
The U.S. is deploying the USNS Comfort to strengthen regional military cooperation.

The Rest of the Story

In a major announcement, Defense Secretary Pete Hegseth confirmed that U.S. warships will now have toll-free and prioritized passage through the Panama Canal.

This comes after the U.S. and Panama signed a memorandum of understanding on defense and security cooperation.

The agreement finalizes what had previously been denied by Panama’s leadership—despite earlier U.S. claims of a deal.

The backdrop to this deal is rising concern over China’s growing influence in Latin America.

Beijing-linked company CK Hutchison controls multiple ports, including two in Panama.

The U.S. sees this as a threat to its national interests.

Hegseth emphasized China’s military and economic presence in the Western Hemisphere, stating that it “must be deterred.”

The Panama Canal Authority and President Mulino had both denied any special arrangements earlier this year.

But after high-level meetings and renewed U.S. commitment to regional defense, the new agreement marks a turning point in the geopolitical tug-of-war in the canal zone.

BREAKING: Hegseth is down in Panama and has a HUGE announcement:

"We'll be signing…a Joint Declaration with the Minister of Canal Affairs on the security & operation of the Panama Canal, which is a framework for U.S. warships & auxiliary ships to sail first and free through… pic.twitter.com/A9ORQLwc13

— Gunther Eagleman™ (@GuntherEagleman) April 9, 2025

Commentary

This is exactly the kind of long game the critics said would fail—but they were wrong.

Trump’s hardline posture toward China and focus on restoring American strength is now bearing serious fruit.

What looked like saber-rattling was actually a smart strategy to push China out of the hemisphere’s most strategic chokepoint: the Panama Canal.

Let’s be clear—this “first and free” access isn’t just about saving money on tolls.

It’s a visible, operational priority that signals U.S. dominance in the region.

It tells the world, and China in particular, that the canal is no longer up for grabs.

And it reminds smaller nations in the Americas that standing with the U.S. still pays off.

The previous administration let Chinese interests creep into key infrastructure projects across the globe.

CK Hutchison’s control over canal-adjacent ports was just one example.

But now, with a potential $19 billion port sale to an American firm and U.S. warships regaining priority, it’s clear the tide is turning.

Hegseth’s move to deploy the USNS Comfort is also smart.

It strengthens military ties under the guise of humanitarian aid, ensuring the U.S. presence is both strategic and welcomed.

That’s a win-win.

Critics mocked Trump’s tariff war with China and said it would isolate America.

Instead, we’re seeing that tough tactics produce results when backed by principle and strength.

This canal deal is proof that real influence is earned—not bought.

It also throws cold water on the Chinese narrative that U.S. actions are just “geopolitical bullying.”

No—this is about protecting national interests, allies, and free navigation.

And it’s working.

The Bottom Line

This new agreement changes the regional balance of power.

By securing toll-free, prioritized access through the Panama Canal, the U.S. has reasserted itself in a vital global artery and cut into China’s strategic foothold.

The framework sends a clear message: America is back in control of its backyard, and China’s influence in the Western Hemisphere has limits.

With military, diplomatic, and economic tools all in play, the U.S. is now positioned to lead—not react.