BlackRock Strikes Port Deal on Both Sides of Panama Canal, Trump Declares U.S. is ‘Reclaiming’ Panama Canal

President Donald Trump hailed the sale of two Panama Canal ports to a U.S.-led consortium BlackRock as a major victory in what he called an effort to reassert American control over the critical shipping route. The $22.8 billion deal, made public on Tuesday, March 4th, involves BlackRock and a Swiss shipping firm and will see the transfer of control of the ports from Hong Kong-based CK Hutchison, which Trump has accused of acting as a proxy for the Chinese government.

The ports, located at the Pacific and Atlantic entrances of the 51-mile-long Panama Canal, have been operated by CK Hutchison since 1997. Though the company insisted the sale was purely commercial, Trump framed it as a national security win, telling Congress, “My administration will be reclaiming the Panama Canal, and we’ve already started doing it.” He further suggested, without evidence, that China had control over the canal and floated the idea of using military force to take it back.

China and Panama swiftly rejected Trump’s assertions. The Panamanian government reaffirmed its sovereignty over the canal, which it has controlled since 1999 under a treaty signed by President Jimmy Carter in 1977. The Chinese Foreign Ministry also dismissed the claims, with spokesperson Lin Jian stating, “China has never been involved in the management or operation of the canal.” Despite these reassurances, Trump’s administration has pressed Panama to curb Chinese influence in the region.

The sale of the ports grants BlackRock and its Swiss partner control of an 80% stake in Hutchison Ports, a company that operates 43 ports across 23 countries. It also includes a 90% stake in Panama Ports, which runs the Balboa and Cristóbal terminals. While these facilities handle cargo traffic, they are separate from the Panama Canal itself, which remains under the authority of the Panama Canal Authority.

Critics argue Trump’s rhetoric inflames tensions with China and misrepresents the canal’s governance. Secretary of State Marco Rubio visited Panama in February and urged the country to limit China’s role in regional trade. However, experts note that multiple foreign entities—including Taiwan, Singapore, and the U.S.—operate ports near the canal, and no single country controls it.

Despite political controversy, the deal remains subject to regulatory approval from Panama’s government. If finalized, the transaction would mark a significant shift in ownership but not alter the canal’s neutral status. As Trump continues his America First agenda, his claims about the canal are expected to spark further debate on U.S. foreign policy in Latin America.