Trump News, Washington D.C. : President Donald Trump celebrated a major win this week after a BlackRock-led consortium finalized a $22.8 billion deal to acquire two key Panama Canal ports from Hong Kong-based CK Hutchison, framing it as a step toward “reclaiming” American influence over the strategic waterway. Highlights
- Trump hails BlackRock’s $22.8 billion Panama Canal ports deal as a U.S. “reclaiming” victory.
- BlackRock-led group buys 90% of Panama Ports Co. from CK Hutchison, curbing Chinese influence.
- Panama vows to probe the deal, asserting canal sovereignty amid rising U.S. tensions.
The agreement, announced March 4 and praised in Trump’s March 7 Congressional address, hands U.S. investors control of the Balboa and Cristobal ports—operated for over two decades by Panama Ports Company—ending what Trump called a risky foothold for China.
Yet, Panama’s government, bristling at Trump’s rhetoric, launched a probe Tuesday into the “purely commercial” transaction, escalating a diplomatic spat as the U.S. flexes its muscle in the region.
A Deal Born of Trump’s Pressure
The BlackRock deal, brokered with Goldman Sachs and Terminal Investment Limited, secures a 90% stake in Panama Ports Company, part of CK Hutchison’s $19 billion ports sale—including 43 docks across 23 countries—after Trump’s January threats to retake the canal over perceived Chinese dominance.
“We gave it to Panama, and we’re taking it back,” Trump declared in his inaugural address, a stance he reiterated March 7, hailing BlackRock’s move as “a large American company” restoring U.S. sway.
The White House, briefed by BlackRock CEO Larry Fink pre-deal per Financial Times sources, sees it as a security coup, with a State Department official noting it removes ports from “Chinese ownership”—despite CK Hutchison’s Hong Kong roots and no direct Beijing ties.
Trump’s pressure paid off:
CK Hutchison’s Frank Sixt insisted the sale, netting over $19 billion after loans, was unrelated to politics, but U.S. lawmakers like Sen. Marco Rubio had long flagged the ports as a “security risk” to the canal, handed to Panama in 1999.
Panama’s President José Raúl Mulino fired back on X Wednesday, March 5: “The Canal is Panamanian and will stay Panamanian!”—denying any reclamation.
Panama Pushes Back, Markets Watch
Panama’s Maritime Authority announced Tuesday, March 11, it will request all legal and financial documents from the BlackRock-CK Hutchison deal, per Minister Juan Carlos Orillac, to “protect public interest” in the canal’s orbit—handling 5% of global trade.
Mulino, rejecting Trump’s “once again lying” claims, greenlit a separate audit of CK Hutchison’s concessions, signaling defiance as Panama diversifies with a proposed LPG pipeline for Asian markets like Japan.
The deal, while a Wall Street boon—BlackRock’s stock rose 2% last week—stirs unease: Panama’s business chamber sees port expansion potential, but critics like The Guardian warn of U.S. “imperialist shakedown.”
U.S. allies split: Canada, reeling from Trump’s March 11 50% steel tariffs, stayed mum, while Rubio, post-Panama visit, demanded free U.S. ship transits—a nonstarter for Panama’s $4 billion canal revenue.
A Trump Win, a Panama Test
The BlackRock deal, a feather in Trump’s cap after six weeks of crypto summits and tariff wars, aligns with his “America First” playbook—hurt China, boost Wall Street, per Geopolitical Economy Report.
Yet, Panama’s probe and Mulino’s defiance test Trump’s grip, with the canal’s 1977 handover treaty still a sore point—Trump’s March 4 speech vowed to “fix” it.
As BlackRock’s Fink speaks at CERAWeek Monday, eyes turn to whether this $22.8 billion play strengthens U.S. logistics or sparks a Latin American backlash, with Trump’s Panama gambit far from settled.
