WASHINGTON (AP) — Defense Secretary Pete Hegseth is set to travel to Panama next week for a meeting with the country’s leaders amid recent claims by the Trump administration of Chinese interference in the Panama Canal’s operations. President Donald Trump has expressed concerns about the U.S. giving up control of the canal to Panama over two decades ago and has hinted at reclaiming it, citing alleged overcharging by Panama. However, Panama has refuted Trump’s allegations of Chinese influence over the canal.
Sean Parnell, the Pentagon’s chief spokesperson, announced on Friday that Hegseth will attend the 2025 Central American Security Conference in Panama. Parnell stated that Hegseth will engage in discussions aimed at strengthening partnerships with Panama and other Central American nations in pursuit of a peaceful and secure Western Hemisphere. Notably, Parnell did not specifically mention the Panama Canal, a key waterway constructed by the U.S. in the early 1900s.
Following Trump’s statements, a Hong Kong-based company has agreed to sell its majority stake in a subsidiary managing ports near the Panama Canal to a consortium that includes BlackRock Inc., effectively placing these ports under American oversight. This agreement grants BlackRock Inc. control over 43 ports across 23 nations, including strategic ports like Balboa and Cristobal at the Panama Canal’s ends, as well as ports in various countries worldwide.
The transaction is subject to approval by Panama’s government, which has asserted its sovereign control over the canal and emphasized that the Hong Kong-based company’s port operations do not signify Chinese influence over the waterway. In addition to his Panama visit, Hegseth is scheduled to visit Eglin Air Force Base to meet with service members and leadership from the 7th Special Forces Group.
