The Panama Canal, a marvel of engineering and geopolitical significance, has once again found itself in the spotlight. This time, President-elect Donald Trump has hinted at a plan that sounds more like something out of a Tom Clancy novel than a presidential campaign promise: taking back control of the Panama Canal. While his statement has electrified his supporters, it has also sent ripples through military and diplomatic circles alike.

Let’s decipher what this means for U.S. military strategy, foreign policy, and the broader implications for the balance of power in the Western Hemisphere.

The Strategic Importance of the Panama Canal

The Panama Canal is more than a shortcut between the Atlantic and Pacific Oceans. It is a linchpin of global trade and a critical asset for military logistics. Completed in 1914, the canal was under U.S. control for most of the 20th century, symbolizing American engineering prowess and geopolitical dominance. But in 1999, the U.S. handed over control to Panama under the terms of the Torrijos-Carter Treaties, which were signed back in 1977.

Since then, the canal has remained a crucial artery for global commerce, handling nearly 6% of the world’s maritime trade. For the U.S. military, it’s a vital link for moving naval and logistical assets between the Pacific and Atlantic theaters—an advantage not lost on the Pentagon.

The once and future president believes, however, that relinquishing the canal to Panama was a mistake, and he suggested that regaining control was necessary to protect American interests and counter the growing influence of China in the region.

China’s Influence in Panama: A Growing Concern

China has increasingly invested in Panama over the past two decades, and its footprint near the canal has alarmed U.S. defense and foreign policy experts. Chinese state-owned companies manage ports on both ends of the canal, raising concerns about potential leverage over one of the world’s most strategic chokepoints.

Trump’s rhetoric centers on the idea that the canal could become a pawn in a broader geopolitical struggle. He’s not wrong. In a conflict scenario, China’s influence could complicate U.S. access to the canal, potentially forcing the Navy to take the long way around South America via Cape Horn.