US troops are set to deploy to several bases along the Panama Canal under a newly signed agreement between the United States and Panama, seen as a significant concession to President Donald Trump, as he seeks to reassert American influence over the strategically vital waterway. This deal, confirmed during a recent visit by US Defense Secretary Pete Hegseth, permits American military personnel to utilize Panama-controlled facilities for purposes including training and exercises. However, it explicitly prohibits the establishment of permanent US military bases, a move that would face strong opposition from the Panamanian government and public. Since assuming office in January, Trump has consistently voiced concerns over what he perceives as excessive Chinese influence in the canal, which is critical as it handles around 40% of US container traffic and 5% of global trade. The US administration has made it clear it aims to “take back” control of the canal, which the US controlled until the treaty transferring it to Panama came into effect in 1999. The memorandum of understanding signed by Hegseth and Panama’s security chief Frank Abrego underscores the acknowledgment of Panamanian sovereignty. Hegseth made statements regarding the need for a joint response to "malign" influences in the region, particularly from Beijing, claiming, “The Panama Canal must be secured with America and not China." During discussions, Hegseth highlighted plans for enhanced cooperation, including potential opportunities for joint military exercises at historical US installations, such as Fort Sherman and Howard Air Force Base. However, despite this inclination, Abrego reiterated the Panamanian leadership's firm stance against permanent military bases, stressing that any deployment will require full agreements and national consent. This diplomatic move further complicates the existing US-Panama relationship, which has been fraught due to historical grievances stemming from past US military interventions. The situational context is further exacerbated by ongoing tensions between the US and China. As Hegseth remarked, “Beijing is investing in this region for military advantage and unfair economic gain,” affirming the US's commitment to deter such influence in its sphere of operations. With the recent deal, both countries seem to be taking proactive steps in ensuring that the canal remains a secure and operationally free route for American vessels, addressing concerns raised by both public perception and geopolitical dynamics. See the full details of the agreement in the report by SCMP for further context.