PANAMA CITY, Panama — Defense Secretary Pete Hegseth had one mission on his trip to Panama — to secure a deal to get “first and free” passage for U.S. ships in the Panama Canal, a critical waterway for the United States’ economy and military that was at risk of falling under China’s control.
As the secretary and his team flew the down from Washington on Monday evening to meet with Panama’s leaders, such a deal with Panama was far from certain.
While the U.S. had built the canal in the early 1900s and maintained it for decades before handing it over to Panama, China had in recent years poured money into projects and infrastructure attached to it. As a passageway between the Pacific and Atlantic Oceans that handles more than 40 percent of U.S. maritime trade, if China were able to close the canal, it would be a catastrophe for the U.S.
President Donald Trump, early on in his administration, made retaking the canal from Chinese influence a top priority. In December, even before he took office for the second time, he posted about it on Truth Social:
In February, Trump dispatched Secretary of State Marco Rubio to Panama during his first international trip, where he successfully persuaded Panama to not renew its participation in BRI (the Belt and Road Initiative), a major win for the United States.
Then, in March, a Hong Kong-based conglomerated named CK Hutchinson sold two ports along the canal to a consortium led by investment giant BlackRock, which would put the two ports located at each end of the canal under American operation. The Chinese government then launched an investigation into the deal to delay it. Trump touted the deal during his Joint Address to Congress.
Now, it was up to Hegseth to secure U.S. ships’ “first and free” passage through the canal.
By all measures, the trip was a resounding success.
Hegseth arrived late Monday. On Tuesday, the secretary met with President José Raúl Mulino, Minister of Public Security Frank Abrego, and Panamanian legislators, visited the Vasco Nuñez de Balboa Naval Base that was formerly a U.S. naval base, and inaugurated a pier refurbished by the U.S. Army Corps of Engineers. He also visited Fort Sherman, a former U.S. Army base, the Jungle Warfare School, toured the Panama Canal by helicopter, and visited the Miraflores Locks. He later met with Abrego again, as well as regional leaders attending the 2025 Central America Security (Centsec) conference.
On Wednesday, Hegseth delivered opening remarks at the conference, which was co-hosted by the U.S. and Panama.
It was there that Hegseth announced that the U.S. and Panama would sign a declaration providing a framework for U.S. warships and auxiliary ships to travel “first and free” through the canal in a huge win for the U.S.
Hegseth and Abrego also agreed to an expanded partnership to secure the canal and signed a Memorandum of Understanding to cooperative security activities between the U.S. and Panamanian militaries, which will see the increase of U.S. troops in Panama.
Asked by Breitbart News if he had accomplished everything he wanted to on the trip, a triumphant Hegseth responded, “This trip not only met but exceeded our expectations. A warm welcome from Panama. Great partnership. Spent a lot of time with their troops. I want to thank Panama for what they’ve done in the Darien Gap as well.”
The trip was not only a success for the U.S. economically, but also geopolitically.
Despite Beijing attempting to pressure Panama by launching an investigation into the CK Hutchison’s sale to the BlackRock-led consortium, Panama remained undeterred in its walkaway from China and reinvigorating its ties with the U.S.
A senior defense official told reporters traveling with Hegseth, “If you look at the context countering Chinese spheres of influence around the world, this is a good example of actions taken by the secretary and by this team about how we align perfectly within the realm of that strategy.”
“When we talk about the larger global strategy in deterring China … people start to realize very quickly that an alliance with China is not all it [is] cracked up to be,” the official added. “The [Chinese Communist Party] is very exploitative of the relationships that they have and that wasn’t just true of our time in Panama, it was the also the same in Japan.”
Senior defense officials also credited Trump for creating the opportunity and confidence for countries who want to work with the U.S. and leave exploitive relationships with China.
“President Trump’s words have resonated with them in terms of negotiating the bolstering of our alliances,” another senior defense official said.
“President Trump made it a point to talk about Panama within his first 30 days of taking office. … The reason why we’re even having this conversation in the first place is because President Trump focused on on the Panama Canal, and I think it’s going to do lot for our country in terms of opportunity with the Panamanians, but ultimately for our hemisphere.”
During his visit, China responded angrily to the prospect of further cooperation between the U.S. and Panama, accusing the U.S. of “blackmail.”
When asked if he was concerned by retaliation by China, Hegseth responded, “No.”
“I’m not worried about retaliation from China. We will stand on our own merits. Peace through strength matters. We represent our interests, put America first, President Trump is staring them down on trade. We will reestablish deterrence as well,” he said.
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