BlackRock Seizes Control of Key Panama Canal Ports in $22.8B Deal Amid Trump Pressure

BlackRock and a group of investors are acquiring a majority stake in CK Hutchison’s Panama Canal port operations in a $22.8 billion deal that also includes ports in other countries. This move aligns with President Trump’s push to reduce Chinese influence in Panama, following his false claim that China operates the canal and his vow to assert U.S. control. While the canal itself remains under the Panama Canal Authority, the deal grants BlackRock a 90% stake in Panama Ports Company, which has managed the Balboa and Cristobal ports for over two decades.

With over 75% of canal traffic linked to the U.S., Washington views the region as strategically critical. The White House and congressional leaders have been briefed on the transaction, which marks BlackRock’s largest infrastructure investment to date. Trump has previously suggested military action to secure U.S. control over the canal. The deal could also help improve BlackRock’s standing with Republicans, who have criticized CEO Larry Fink over the company’s ESG-focused investment strategies.

BlackRock Seizes Control of Key Panama Canal Ports in $22.8B Deal Amid Trump Pressure

BlackRock and a group of investors have agreed to purchase a majority stake in the Hong Kong-based company that operates ports on both sides of the Panama Canal. The $22.8 billion deal, which includes additional port assets in other countries, shifts control of these critical docks to U.S. and Swiss interests. This move aligns with President Donald Trump’s push to reduce Chinese influence over the canal, a position he emphasized in his inauguration speech, despite incorrectly claiming that China operates the waterway.

The Panama Canal itself remains under the control of the Panama Canal Authority, an independent entity overseen by the Panamanian government. However, the sale gives BlackRock’s consortium a 90% stake in Panama Ports Company, which has managed the Balboa and Cristobal ports for over 20 years. The White House and congressional leaders have been briefed on the transaction, which represents BlackRock’s largest infrastructure investment to date.

With more than 75% of canal traffic linked to the U.S., Washington sees the region as strategically vital. Trump has previously raised concerns over Chinese and Hong Kong-based companies operating in Panama, calling CK Hutchison’s presence a security risk. He has also refused to rule out military action to assert greater U.S. control over the canal.

Beyond its geopolitical implications, the deal could serve to improve BlackRock’s standing with Trump and Republican lawmakers, some of whom have criticized CEO Larry Fink over the company’s past focus on environmental, social, and governance (ESG) investment strategies.

However, BlackRock and Fink continue to face opposition from Trump’s MAGA-aligned supporters, who view the firm’s past emphasis on environmental, social, and governance (ESG) investment strategies as a sign of corporate overreach. Many conservatives have accused BlackRock of prioritizing progressive policies over financial returns, leading some Republican-led states to divest from the firm’s funds. Despite BlackRock’s recent efforts to distance itself from ESG initiatives and align more closely with conservative economic interests, skepticism remains high among Trump’s base.

The acquisition of Panama’s key port infrastructure may improve BlackRock’s standing with the Trump administration, but critics argue that the firm’s deep entrenchment in global finance still makes it an unlikely ally of the MAGA movement. Additionally, concerns over foreign influence in U.S. financial markets persist, with some questioning whether BlackRock’s growing control over strategic assets could lead to unintended geopolitical risks. As the 2025 political landscape evolves, BlackRock’s position remains under scrutiny.