President Trump’s second term has so far been defined by a bold and expansionist foreign policy, marked by
efforts to assert control over strategic territories. This is evident in his vocal support for Israeli actions in Gaza and renewed claims over Greenland.
In April 2025, U.S.-Panama relations entered a new phase of tension centred on the Panama Canal—a vital maritime artery that facilitates 40% of U.S. container traffic and 5% of global trade. Citing growing concerns over Chinese influence in the canal's operations, Trump’s administration announced intentions to "reclaim" control over the waterway, which the U.S. built and managed until its handover in 1999. These statements have revived memories of the 1989 U.S. invasion of Panama— Operation Just Cause—which caused thousands of civilian casualties and infrastructure destruction.
On April 9th, the two nations signed a security pact involving the reactivation of three former U.S. military bases (Fort Sherman, Rodman Naval Base, and Howard Air Force Base) for joint training exercises. The agreement also includes provisions for enhanced security cooperation, reimbursement of U.S. vessel transit fees, and the cancellation of a major infrastructure deal between Panama and China. Additionally, Panama committed to auditing Chinese-operated port facilities.
Despite the diplomatic framework, the deal has sparked public backlash within Panama. Critics view the agreement as a breach of sovereignty and have drawn parallels to past U.S. interventions.
Mass protests have erupted, fueled by concerns over the opaque nature of the negotiations and the perceived imbalance of power between the two countries. Opposition leader Ricardo Lombana of the Another Way Movement condemned the deal as a “camouflaged invasion.” In a public statement on April 12, he described it as “an invasion without firing a shot,” pointing to the U.S. refusal to formally acknowledge Panama’s ownership of the canal during negotiations. Civil society organizations, including the Panamanian chapter of Transparency International, have echoed calls for government transparency and public disclosure of the pact's full contents. This episode highlights the enduring complexities of U.S.-Panama relations and the intensifying geopolitical competition in Latin America. As Washington seeks to counter Beijing’s growing influence in the region, Panama is caught between global powers while striving to preserve its sovereignty and the neutrality of the canal.
