United States President Donald Trump has taken major steps to reclaim American influence over the Panama Canal amid growing concerns about Chinese presence in the region. Defense Secretary Pete Hegseth directly blamed former President Barack Obama’s administration for allowing China to expand its influence throughout South and Central America, particularly around the strategic waterway.

“The Obama administration took their eye off the ball and let China just sweep in,” Hegseth said in a Fox News interview. “China did not build this canal. China does not operate this canal. And China will not weaponize this canal. Together, we will take back the canal from China's influence.”

Hegseth, who attended a regional conference in Panama, emphasized that the United States is committed to investing in projects that align with its interests in Latin America. He highlighted that the Trump administration is determined to push back against what it views as predatory Chinese infrastructure deals and surveillance programs in the area.

Meanwhile, a joint agreement reportedly signed by top Panamanian and U.S. security officials enables the deployment of U.S. troops to Panama-controlled facilities along the canal. While the deal does not permit the establishment of permanent U.S. military bases, it allows for American forces to be stationed for training, exercises, and other activities—with each deployment contingent upon Panama’s approval.

If confirmed, the deal would mark a significant policy victory for President Trump, who has consistently pledged to reclaim control over the canal. Trump’s stance stems from concerns that China’s economic and political reach in the region poses a threat to U.S. security and influence. The agreement is seen as a strategic step in reasserting American authority in what Trump has called “our backyard.”

This development underlines a sharp turn in U.S. foreign policy under the re-elected president, focusing on curbing China’s expansion and reinforcing American presence in geopolitically critical areas.