Trump celebrates U.S. control over Panama Canal ports

U.S. President Donald Trump has praised a deal led by BlackRock to acquire a majority stake in the $22.8 billion ports business of Hong Kong-based CK Hutchison, which includes key assets along the Panama Canal. This acquisition will give a U.S. consortium control over critical Panama Canal ports, aligning with Trump’s call to remove Chinese ownership in the region. However, the deal has stirred tensions between the U.S. and Panama, which disputes Trump’s statements about the Canal’s status.

Trump declared to Congress that his administration is "reclaiming" the Panama Canal, highlighting that a large American company is now buying both ports and other assets tied to the Canal. In response, Panama's president, Jose Raul Mulino, labeled Trump’s remarks as false, asserting that the Panama Canal is and will remain under Panamanian control.

The agreement with the BlackRock-led consortium includes a 90% stake in Panama Ports Company, which manages the Balboa and Cristobal ports at either end of the Canal. In total, the consortium, which also includes Terminal Investment and Global Infrastructure Partners, will control 43 ports across 23 countries. The $14.21 billion deal sent CK Hutchison’s stock soaring by over 20%, marking the highest price since August 2023.

The deal is part of a broader $19 billion sale, involving CK Hutchison’s 80% stake in Hutchison Ports. Goldman Sachs is advising CK Hutchison on the transaction. Despite political discussions around the Canal’s ownership, the company emphasized that the transaction is strictly commercial, not linked to any recent political developments.

The Panama Canal, a vital waterway for global trade, is especially strategic for the U.S., with the majority of its traffic tied to American vessels. Trump has repeatedly claimed the Canal was under Chinese influence, given CK Hutchison’s Hong Kong base. However, Panama’s president emphasized that the Canal remains under Panamanian sovereignty, reinforcing the nation’s control over this crucial asset.