Geopolitical tensions surrounding the Panama Canal have entered June 2025 with no signs of resolution, following months of diplomatic escalation. The conflict intensified after U.S. President Donald Trump — who formally took office on January 20, 2025 — reignited a longstanding controversy last December by publicly demanding the “return of the Canal,” calling it a “vital asset” for U.S. security and the economy.
Trump harshly criticized the 1977 Torrijos-Carter Treaties, which transferred administration of the canal to Panama, and accused the Panamanian government of imposing “ridiculous tariffs” on U.S. ships. He also condemned China’s growing influence over this strategic interoceanic passage.
Companies, ports, and diplomatic pressure
The situation further escalated in March when Hong Kong-based CK Hutchison Ports announced the sale of the Balboa and Cristóbal ports to a consortium led by Swiss shipping giant MSC and U.S.-based investment firm BlackRock. While the deal was seen as an effort to curb Chinese presence, it also sparked concerns over increased foreign control of critical infrastructure.
According to The Economist, what began as a commercial dispute has now evolved into a high-level geopolitical standoff between the world’s two leading powers. The stability of global maritime trade now hangs in a delicate diplomatic balance.
Panama reaffirms the canal’s neutrality
The Panamanian government has reiterated its commitment to the neutrality of the Panama Canal, as established in the 1977 Neutrality Treaty. However, U.S. Secretary of Defense Pete Hegseth stated during a visit to the country that “The United States will not allow Communist China or any other actor to jeopardize the operation of the Canal.”
“China did not build this canal, does not operate it, and will not arm it,” Hegseth declared from a naval base at the Pacific entrance of the canal. Washington maintains that Chinese companies still control key infrastructure that could be used for surveillance — a threat, according to the U.S., to regional security.
The dispute over the Panama Canal not only revives historic tensions between Panama and the United States but also marks a new chapter in the global rivalry between Washington and Beijing. As Panama defends its sovereignty and neutrality, the world watches closely as this strategic waterway once again becomes a key stage in the international geopolitical arena.
Sources
Welle, D. (2025, 9 abril). EE.UU. «no permitirá» influencia de China en Canal de Panamá. dw.com. https://www.dw.com/es/eeuu-no-permitir%C3%A1-influencia-de-china-en-canal-de-panam%C3%A1/a-72179812
Hernández, P. (2025, 27 mayo). Disputa entre Estados Unidos y China por el control estratégico de puertos en el Canal de Panamá. Nación Logística. https://nacionlogistica.com/disputa-entre-estados-unidos-y-china-por-el-control-estrategico-de-puertos-en-el-canal-de-panama/
