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Trump Directs Military to Draft Plans for Retaking Panama Canal

The administration moves to push China out of the strategic chokepoint.

President Donald Trump has ordered the U.S. military to develop strategies for reclaiming the Panama Canal, signaling a major shift in America’s posture toward China’s growing influence in the region.

According to NBC News, U.S. Southern Command is spearheading the effort, which includes options ranging from increased security cooperation with Panama to a full-scale U.S. military operation to retake control of the canal. The final course of action, officials say, depends on whether Panama complies with Washington’s demands.

During his recent address to Congress, Trump made it clear that the U.S. would be reclaiming the canal, calling the Carter-era treaty that gave control to Panama a disastrous mistake.

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

Trump’s concerns are backed by top military officials who warn that China’s presence near the canal poses a direct threat to U.S. national security.

  • China has invested heavily in Panama’s infrastructure, giving Beijing economic and strategic leverage over the canal.

  • The canal is a critical chokepoint, allowing China to potentially restrict U.S. military and commercial shipping in the event of a conflict.

  • Chinese state-owned enterprises continue to bid on key projects, raising fears of future PLA (People’s Liberation Army) access to the region.

Adm. Alvin Holsey, the commander of U.S. Southern Command, has already presented draft plans to Defense Secretary Pete Hegseth outlining how the U.S. could reassert control. Sources say that Trump wants a visible military presence in Panama as a show of force, ensuring that China’s influence is diminished.

Gen. Laura Richardson, the previous commander of Southern Command, warned Congress last year about China’s strategy:

“The PRC [People’s Republic of China] messages its investments as peaceful, but in fact, many serve as points of future multi-domain access for the PLA and strategic naval chokepoints.”

China is playing the long game, and past administrations have allowed Beijing to expand its reach unchecked. But Trump’s decisive action makes it clear:

America will not allow a hostile foreign power to control the gateway between the Atlantic and Pacific.

With military preparations underway, the message to China is loud and clear the U.S. is taking back what it built, and it will not be compromised.

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