Panama Canal, Swimming Closer to the US

March 10th, 2025

Boyana Nikolova

A circle of US investors is attempting to buy out 2 key ports, located on both sides of the strategic Panama Canal. The investors, led by risk management company Blackrock, will purchase majority stakes of the ports in order to informally acquire them. The coming acquisitions are expected to fortify US control over world shipping while simultaneously ramping up economic pressure on Latin America.

This is why the ports, long targeted by Blackrock, are parts of the Panama Canal. The Panama Canal has been a strategic shipping route ever since its construction in 1914 and today, it makes up close to 70% of world trade. Because of this significance, however, ownership has and continues to be a contentious issue. The US used to be solely in charge of canal operations before that control was transferred to Panama in 1999. Today, under the Trump administration, US officials have promised to reclaim that past influence, citing risks of Chinese interference as to why it’s necessary.

Thankfully for them, the excuse has proved effective. Companies with ties to China have indeed acted to acquire ports in Latin America. For example, the Hong Kong-based company CK Hutchison controlled around 90% of the Balboa and Cristobal ports, the same ones that Blackrock is attempting to acquire now. This was just part of China’s greater presence in the canal, as it still handles 40% of shipping containers there and often weaponizes that power against American shipping companies, blocking or delaying their passage.

The Trump administration is ardently cracking down on that control. Apart from facilitating the $23 billion deal between Blackrock investors and CK Hutchison, Trump’s team will also assist the investors in buying out 40 other ports from across the world. All of these actions stay aligned with the America First policies Trump campaigned on. “Taking back” ports that once belonged to the US and putting US companies in a dominant position within their respective industries - both are intended to prioritize American economic interests, while ignoring decades-old treaties and the opposition of Panama, a country found in the crosshairs of the ordeal.

Even then, concerns about Blackrock’s veritability and whether or not it has ulterior motives have continued. Conspiracy theorists have long guessed that Blackrock secretly controls and manipulates the world’s resources for its own agenda. Thus, the idea of Blackrock acquiring the most profitable and strategic ports in Panama has been seen as nefarious and supposedly anti-human.

Regardless of whether Blackrock’s true motives are securing control or following the instruction of the Trump administration, Panama is in for a ride. Ownership over its strongest assets is shifting from China to the US and pressure from President Trump will only become more intense. Going forward, watchfulness over its economy will be vital.