Panama City, Panama – March 28, 2025 – Panamanian President José Raúl Mulino today issued a statement rejecting U.S. claims over the Panama Canal, responding to President Donald Trump’s recent comments on a BlackRock-led consortium’s acquisition of key canal ports. Mulino’s remarks come amid growing tensions between the U.S. and Panama, following Trump’s assertion that the deal marks progress in “reclaiming” the canal for American interests.
On March 5, Trump praised the $22.8 billion deal, in which a consortium led by U.S. firm BlackRock agreed to purchase a 90% stake in Panama Ports Company from Hong Kong-based CK Hutchison. The company operates the Balboa and Cristobal ports at either end of the Panama Canal, handling 40% of the waterway’s container traffic last year. Trump, speaking to the U.S. Congress, stated, “My administration will be reclaiming the Panama Canal, and we’ve already started doing it.” He framed the deal as a step to counter perceived Chinese influence, despite CK Hutchison being a private Hong Kong company with no direct financial ties to the Chinese government.
Mulino, in a post on X this morning, called Trump’s claims “lies,” asserting Panama’s sovereignty over the canal. “The Panama Canal belongs to Panamanians, and no foreign power will dictate its future,” he wrote. The canal has been under Panama’s control since 1999, following treaties signed in 1977 that transferred authority from the U.S. to Panama. Mulino emphasized that the canal’s operation remains in the hands of the Panama Canal Authority, an independent government agency, and that the BlackRock deal involves only the ports, not the waterway itself.
The deal has stirred controversy in Panama, where U.S. involvement in the canal remains a sensitive issue. In 1964, clashes between Panamanian protesters and U.S. authorities over the canal zone resulted in 24 deaths, an event still remembered as a symbol of national resistance. Local analysts suggest that Trump’s rhetoric risks inflaming public sentiment, with some Panamanians viewing the BlackRock acquisition as a step toward renewed U.S. dominance.
The BlackRock-led consortium, which includes Global Infrastructure Partners and Terminal Investment Limited, will control 43 ports across 23 countries through the deal, including the two Panama Canal ports. CK Hutchison has maintained that the transaction is purely commercial, with co-managing director Frank Sixt stating on March 4 that it is “wholly unrelated to recent political news reports.” However, the timing of the sale—amid Trump’s pressure on Panama and a Panama Supreme Court review of CK Hutchison’s port contract—has fueled speculation of geopolitical motivations.
U.S. officials have expressed support for the deal, with a State Department spokesperson noting on March 5 that it ensures a “controlling stake” in the ports for U.S. investors. The U.S. is the canal’s largest user, with 70% of its shipping traffic linked to American ports, followed by China at 12%. Trump’s administration has also raised concerns about canal fees, with Secretary of State Marco Rubio stating in February that U.S. vessels should traverse the canal at no cost, given America’s role in protecting it during conflicts.
Panama’s government has not yet approved the BlackRock deal, which remains subject to regulatory review. The Panama Canal Authority reported that 12,000 ships used the canal last year, connecting 1,920 ports across 170 countries. Any shift in port control could impact global trade, particularly if U.S.-Panama relations deteriorate further. For now, Mulino’s rejection of Trump’s claims signals Panama’s intent to maintain control over its most vital asset, setting the stage for continued diplomatic friction.
