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President Donald Trump’s administration has launched a campaign to reclaim strategic oversight of the Panama Canal from Chinese influence, according to U.S. Defense Secretary Pete Hegseth, who detailed the operation during a Sunday television appearance. Speaking on Sunday Morning Futures, Hegseth explained that the administration has signed a pair of “historic” agreements with Panamanian officials aimed at restoring American authority over the key waterway.
“President Trump said at a State of the Union address, China has too much influence over the Panama Canal, and America is gonna take it back,” Hegseth said in the interview. “That’s exactly what I was charged to do, and what we’re continuing to do.”
The defense secretary outlined two recent measures undertaken by the Trump administration to counter Beijing’s encroachment. First, an agreement with the Panama Canal Authority ensures U.S. military and auxiliary vessels will receive priority and free passage through the canal. Second, a memorandum of understanding was signed with Panama’s defense leadership and President Enrique Molina, laying the groundwork for expanded U.S. presence and joint military cooperation.
Hegseth confirmed that the United States will reopen and expand operations at Fort Sherman, a former U.S. military base near the canal, in partnership with Panamanian forces. “You need to secure that key terrain,” Hegseth said. “Fort Sherman will reopen jointly with the Panamanians and is going to have a larger U.S. presence at the invitation of Panama, working with them to keep the communist Chinese out.”
“If we can’t use that waterway in a key contingency, China has an advantage,” Hegseth said. “We’ve been asleep at the wheel. President Trump has said we need to be serious about our own backyard.”
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