The Trump administration has scored a decisive foreign policy win as Defense Secretary Pete Hegseth finalized a landmark deal securing “first and free” passage for U.S. vessels through the Panama Canal. This move not only reasserts American dominance in a critical global shipping lane—it also deals a direct blow to China’s creeping influence in Latin America. A Strategic Victory in the Heart of the Hemisphere During a high-stakes diplomatic mission to Panama, Hegseth negotiated a deal that guarantees priority access for U.S. military and commercial ships, ensuring uninterrupted American mobility through one of the world’s most strategic maritime chokepoints. With over 40% of U.S. maritime trade passing through the canal, this agreement protects vital national interests and eliminates vulnerabilities that had been growing under increasing Chinese economic control. China had been using its Belt and Road Initiative and strategic port acquisitions to gain leverage over Panama’s logistics and infrastructure. But that influence is now collapsing under pressure from the Trump administration’s bold, America-first diplomacy. Trump and Rubio Push Back on China’s Economic Encroachment This canal agreement didn’t happen in isolation. It’s the latest result of a coordinated effort by President Trump’s foreign policy team to dislodge China’s foothold in the Western Hemisphere. Earlier this year, Secretary of State Marco Rubio persuaded Panama to withdraw from China’s Belt and Road Initiative, reversing years of creeping Beijing-backed development. NEW: I asked @PeteHegseth if he’s concerned about retaliation from China following his fruitful visit to Panama. “No,” he responds. “I’m not worried about retaliation from China. We will stand on our own merits. Peace through strength matters. We represent our interests, put… pic.twitter.com/GxFtDq34Zn — Mary Margaret Olohan (@MaryMargOlohan) April 9, 2025 Soon after, a Chinese-controlled Hong Kong conglomerate sold two canal-adjacent ports to a U.S.-led investment group anchored by BlackRock, shifting key logistics hubs back under American influence. These moves signal a strategic rollback of Chinese power in the region—reminiscent of Cold War-era realignments—with Panama once again emerging as a vital partner in hemispheric defense and trade. Reinforcing Military and Security Ties The canal deal also includes a security Memorandum of Understanding, enhancing cooperation between U.S. and Panamanian forces. The agreement will facilitate joint efforts to protect canal infrastructure from potential sabotage, espionage, or foreign coercion. .@SecDef @PeteHegseth tells @BreitbartNews that his trip to Panama “exceeded our expectations.” pic.twitter.com/fFjAEHYY2r — Kristina Wong (@kristina_wong) April 9, 2025 Hegseth praised Panama’s role in securing the Darien Gap—a notorious smuggling route—and reaffirmed America’s commitment to hemispheric stability: “This trip not only met but exceeded our expectations. A warm welcome from Panama. Great partnership.” Meanwhile, China’s reaction has been hostile, accusing the U.S. of “blackmail” and “economic coercion.” But the administration remains unfazed. Hegseth and senior defense officials credit President Trump’s firm leadership for ushering in a new era of American strength abroad. As one defense official put it: “Countries are increasingly choosing to align with America. President Trump’s words have resonated—and they’re seeing results.” The Panama Canal agreement marks a turning point in the geopolitical contest for influence in Latin America. And for the Trump administration, it’s another example of putting America first—and winning. Sources: Defense Secretary Pete Hegseth Secures ‘First and Free’ Passage for U.S. Ships in Panama Canal This Week in DOD: Better Access to Panama Canal, Billions Saved by DOGE, Outreach Effort Begins