Panama Hopes the Pete Hegseth Visit Turns a Page and Ends Trump Pressure
On a rare high-level visit to Panama, U.S. Defense Secretary Pete Hegseth secured new commitments from Panama but left some Panamanian officials wondering if they were enough to satisfy President Trump, who has repeatedly vowed to “take back” the country’s canal. Under normal circumstances, the flurry of agreements and concessions announced over the two-day visit would be hailed as a high point in U.S.-Panama relations. Hegseth and his counterparts agreed to work out a “first and free” deal to reimburse U.S. vessels for transit fees through the Panama Canal, signed a memorandum of understanding to increase security cooperation and agreed to resume jungle warfare training for U.S. troops.
Panama had previously announced that it would scrap an infrastructure deal with China and conduct a sweeping financial audit of Hong Kong-based CK Hutchison Holdings, which controls ports on either side of the canal. It had also agreed to accept non-Panamanians deported from the U.S., one of the Trump administration’s top priorities. As Hegseth took off from Panama City to return to Washington on Wednesday, Panamanian officials appeared relieved. “We went all in,” one person familiar with the discussions said. The Panamanian president had a warm rapport with Hegseth, who at one point called Trump and put him on speakerphone. Trump indicated that he was pleased with the negotiation, the person said, and that he would watch their press conference on television.
Some in Panama remained wary, even though the Pentagon chief’s visit was hailed as a “new chapter” between the two countries after months of escalating threats from Trump, who has refused to rule out military force to fulfill his promise to reclaim the Panama Canal. “It has been as if your best friend becomes furious with you for no reason,” said Panamanian congressman Roberto Zuñiga, describing U.S. demands in recent weeks. Zuñiga said he hoped to see Panama’s president, José Mulino, and Trump meet for high-level discussions to address pressure directed from Washington. “Sometimes great opportunities arise in a crisis,” Zuñiga said, “and so I think this could be a great opportunity to turn the page on this matter and strengthen our relationship with our great ally.”
Hegseth cast Panama as a partner in America’s goals after months of heated rhetoric that has inflamed nationalistic fervor in the country in the aftermath of Trump’s comments about the canal. “Obviously, he’s the impetus for this,” Hegseth said of Trump, confirming that he had been in touch during the visit. “He put the spotlight on the importance of the Panama Canal.” “We certainly recognize that the Panama Canal is in Panama,” Hegseth said at a press conference on Wednesday. The Panamanian security minister Frank Abrego, who stood next to Hegseth, added that the U.S. defense chief had acknowledged Panama’s sovereignty over the waterway. It was a contrast to the tense visit from U.S. Secretary of State Marco Rubio two months earlier, during which he warned Mulino that the U.S. would “take measures necessary” if Panama didn’t curb Chinese influence.
That trip ended with Mulino accusing the U.S. of “quite intolerable falsehoods” about having secured a deal for free passage for U.S. government vessels through the canal. Hegseth, the first defense secretary to visit Panama in decades, said the two countries had agreed to “bold steps” to “secure” the canal, which was built by the U.S. in 1914 and handed to Panama in 1999. “Together, we will take back the Panama Canal from China’s influence,” Hegseth said earlier, speaking on Tuesday from a pier that the U.S. had helped renovate. “China will not weaponize this canal. Together with Panama in the lead, we will keep the canal secure and available for all nations.”
