A headline at Reuters on 10 April 2025 says: “US recognizes Panama’s sovereignty over canal, Panama says after talks.”
What the hell is going on? And what’s with Trump’s obsession over Panama?
The Panama Canal is controlled by a Hong Kong-based company CK Hutchison Holding (owned by Li Ka-shing), which operates both the entrance port at Pacific ocean and Atlantic ocean. And last month, the company said that it would sell its interests in a deal worth $22.8bn to a consortium led by US investment firm, BlackRock. The deal covered a total of 43 ports in 23 countries, including the 2 in Panama.
But then on Monday 31 March the Chinese government blocked the deal (Hutchison is a private company but operates under Chinese government’s financial laws), citing a thread to its national interest. And two days later, Trump launched the tariff bombshell and hit China pretty hard. Coincidence? The timing is definitely suspicious.
A week later on Monday 7 April, Panama’s comptroller authority suddenly publish an audit that claims to have found irregularities in the renewal of a 25-year port concession with Hutchison, which put more pressure for Hutchison to let Panama go. And coincidentally (juuust coincidentally), the report was published on the same day the US Defense Secretary Pete Hegseth visited Panama to participate in a regional security conference.
He’s the first Defense Secretary to visit Panama in decades, and in the conclusion of his visit on Wednesday he said that the US recognizes Panama’s sovereignty over its canal, and announced an agreement to deepen US military training in the country (you know what happens when Murica decides that a country needs “freedom” LOL). But why the sudden interest on Panama?
Note that Trump has been talking about America’s plan to “take back” Panama for months in a matter of national interest. Because, get this, around 40% of US container traffic (roughly $270 billion/year) passes this canal. Imagine what will happen if “China” suddenly closes the canal? Looks like Panama is a key puzzle piece to this whole shenanigans, as this leverage China has is driving Trump crazy.
THE CHAOS THEORY 