According to a report, the White House has instructed the US military to design plans for increasing American troop deployment in Panama as part of President Donald Trump's objective to "reclaim" the Panama Canal. The move is intended to counter China's influence in the region and reinforce US control over the strategic waterway. During a current joint address to Congress, Trump announced his administration’s goal to "reclaim" the canal but did not elaborate on the specifics. Since then, US Southern Command has been exploring various options, including enhanced cooperation with Panamanian security forces and, though less likely, a possible military takeover of the canal. The Trump administration considers that strengthening the US military presence in Panama would curb China's growing influence, particularly in areas near the canal.

Panama and China have denied that Beijing has any operational control over the 50-mile canal, which remains under Panama's administration as per the 1977 treaty signed by then-President Jimmy Carter. However, US officials worry that Chinese-backed infrastructure projects could potentially serve military purposes in the future. As per the report, US Southern Command chief Adm. Alvin Holsey has already submitted draft strategies to Defence Secretary Pete Hegseth, who is set to visit Panama next month. The proposed measures include securing existing ports, constructing new ones, deploying US military personnel to protect shipping routes, and even reopening US Army jungle warfare training schools, which were closed when Panama assumed complete control of the canal in 1999.

Although a full-scale military invasion is highly improbable, officials cited in the report indicated that it would only be considered if diplomatic and strategic efforts failed to achieve Trump’s goal of reasserting US control over the canal. Trump has secretly told his advisers that he views an American military presence in Panama as essential to that objective. He also emphasised that US troops should be visibly stationed in the canal zone to show strength.

Secretary of State Marco Rubio, who visited Panama last month, reportedly informed Panamanian President José Raúl Mulino that the US would not tolerate China’s presence in the region. However, Mulino has repeatedly denied claims that Panama has surrendered any canal control to Beijing.

The growing US military focus on Panama is part of a more considerable effort to counter China’s global economic expansion, particularly its Belt and Road Initiative. Last year, former US Southern Command chief Gen. Laura Richardson cautioned Congress that China’s investments in key locations like the Panama Canal could have dual uses, offering commercial and military advantages to Beijing. Currently, around 200 US troops are stationed in Panama on a rotating basis, with some Special Forces units collaborating with Panamanian forces on security operations.

The report indicates that the administration is considering deploying US forces in the region as a precaution in case of a bigger conflict. Officials clarified that the US would only attempt to block Chinese access to the canal in the event of a war. Trump's efforts to reassert influence over the canal have already triggered economic changes in the region. Earlier this month, a company based in Hong Kong decided to market its majority stake in the Panama Ports Company, which manages essential terminals at both ends of the canal, to a group of firms, including US investment giant BlackRock. The $22.8 billion deal still awaits permission from the Panamanian government. Despite Trump's firm stance on reclaiming control over the canal, Panamanian officials have pushed back against suggestions of increased US military involvement. President Mulino dismissed concerns about Chinese military control as "nonsense" and rejected any notion of foreign interference.