Republican-backed legislation would authorize Trump to start negotiating with Panama
WASHINGTON — On Thursday, new legislation was introduced in Congress that would allow incoming President Donald Trump the opportunity to negotiate the buyback of the Panama Canal. This proposal, known as the Panama Canal Repurchase Act of 2025, was presented by U.S. Representative Dusty Johnson, R-S.D., and has been referred to the House Foreign Affairs Committee.
The bill empowers the president, in coordination with the secretary of state, to “initiate and conduct negotiations with appropriate counterparts of the Government of the Republic of Panama to reacquire the Panama Canal.” It mandates that the president submit a report to Congress six months after the act’s enactment, outlining the progress of negotiations, potential challenges, and expected outcomes. Currently, the bill has garnered support from 16 co-sponsors, all Republicans.
In December, Trump began discussing the idea of repurchasing the 51-mile canal—a transfer that occurred under a treaty signed by President Jimmy Carter in 1977 and took effect in 2000—citing economic and national security reasons.
Representative Johnson expressed support for Trump’s consideration of the canal’s repurchase, stating, “China’s interest in and presence around the canal is a cause for concern. America must project strength abroad – owning and operating the Panama Canal might be an important step towards a stronger America and a more secure globe.”
Johnson’s office raised alarms about increasing Chinese influence in the Panama Canal area, noting that in 2018, Panama became the first Latin American country to join China’s Belt and Road Initiative. Furthermore, Chinese-backed companies currently hold management rights for the two ports flanking the canal.
The implication of not owning the Panama Canal is significant; ocean shippers would need to navigate an additional 8,000 miles around South America. With over 10,000 ships using the canal each year, it generates billions in tolls that could greatly benefit the U.S. economy. Data from the U.S. State Department indicates that 72% of vessel transits through the canal are linked to U.S. ports, highlighting its importance for the Coast Guard and Department of Defense operations.
After Trump expressed his desire to regain control of the canal on Truth Social, Panamanian President José Raúl Mulino rebuffed claims of escalating Chinese influence over the waterway as well as concerns about increased fees for U.S. ships.
Trump reiterated his stance earlier this week, stating he wouldn’t rule out military action to secure the canal when questioned at a press conference in Florida. He remarked, “No, I can’t assure you on either of those two. But I can say this: We need them for economic security.”
In response, Panama’s Foreign Minister Javier Martínez-Acha asserted, “The only hands operating the canal are Panamanian, and that is how it is going to stay,” according to the BBC.
