American asset management giant BlackRock has finalized an agreement to acquire two major ports at either end of the Panama Canal in a $22.8 billion deal. The acquisition, made in collaboration with a consortium of investors, follows persistent concerns from former U.S. President Donald Trump over Chinese influence in the region.
The ports of Balboa and Cristobal, currently operated by Hong Kong-based CK Hutchison, are crucial gateways for global trade. The purchase is expected to address U.S. concerns regarding foreign control over critical infrastructure, particularly after Trump repeatedly suggested that China was exerting control over the canal, despite its management being under the Panama Canal Authority since 1999.
“China is operating the Panama Canal. And we didn’t give it to China. We gave it to Panama, and we’re taking it back,” Trump declared in his inaugural address. He also hinted at potential military or economic action to reclaim U.S. influence over the waterway.
Beyond the Panama transaction, BlackRock’s consortium is set to acquire CK Hutchison’s stakes in 43 other ports across 23 countries, excluding those in China and Hong Kong. BlackRock CEO Larry Fink described the deal as a strategic move to bolster global trade infrastructure, emphasizing long-term investment potential.
The Panama Canal remains one of the most significant maritime passageways in the world, facilitating approximately 4% of global trade and over 40% of U.S. container traffic. Since its transition to Panama’s control, the canal has generated substantial revenue, with 2024 profits nearing $5 billion. According to a report by IDB Invest, around 23.6% of Panama’s annual income is tied to the canal and its associated services.
The White House has yet to issue an official statement on the BlackRock deal. However, Trump’s national security adviser, Mike Waltz, previously acknowledged that Panama’s government had engaged in discussions regarding the future of the ports.
Despite the change in ownership, Trump’s broader concerns about Panama’s canal tolls on American vessels remain unaddressed. During a recent visit to Panama, Secretary of State Marco Rubio called for exemptions for U.S. ships, arguing that Washington has a security obligation to protect the canal in times of conflict. He described it as “absurd” that the U.S. should pay fees to access a zone it is committed to defending.
The acquisition marks a significant shift in control over key maritime infrastructure, raising questions about U.S. influence in the region and how Panama will navigate its relationships with global powers moving forward.
