Trump Scores Big as BlackRock Makes Major Move in Panama Canal
In a significant development, American investment firm BlackRock has gained control over key ports along the Panama Canal, just months after President Donald Trump publicly suggested that the U.S. should take back control of the strategic waterway.
The sale marks a shift in ownership from CK Hutchison Holdings Ltd., a Hong Kong-based conglomerate, to a partnership led by BlackRock.
BlackRock, in collaboration with Global Infrastructure Partners and Terminal Investment Ltd., has secured an 80 percent stake in Hutchison Ports group, which operates 43 ports across 23 countries, according to Trending Politics. As part of this deal, the consortium now controls 90 percent of Panama Ports Co., which operates two major canal ports located in Balboa and Cristobal.
CK Hutchison will receive about $19 billion in return for the sale, according to Bloomberg.
The Panama Canal, which facilitates trade between the Pacific and Atlantic Oceans, has been a focal point in global commerce since its construction in 1904. Trump recently argued that the U.S. should reclaim control of the canal, emphasizing that the country had “invested every dollar in its creation.”
Prior to the canal’s construction, cargo ships had to travel thousands of miles around Cape Horn at the southern tip of South America, TP notes.
The timing of the port acquisition coincides with Trump’s implementation of new tariffs on imports from Canada, Mexico and China. The tariffs, which took effect on Tuesday, include a 25 percent levy on various imported goods.
Hours after they were enacted, Trump posted on Truth Social, urging companies to relocate their operations to the U.S. to avoid the tariffs.
“If companies move to the United States, there are no tariffs!!!” he wrote.
Though CK Hutchison is a publicly traded company, Hong Kong’s increasing alignment with Beijing has raised concerns over potential Chinese government influence. The sale of Panama Canal ports to an American firm may indicate a strategic shift to strengthen economic ties with the U.S. amid rising tensions between Washington and Beijing, according to TP.
Trump’s administration had previously warned about China’s growing control over critical infrastructure worldwide, including port operations.
China responded to Trump’s latest tariff actions by implementing retaliatory tariffs on U.S. goods. On Tuesday, Trump doubled a tariff on Chinese imports to 20 percent, escalating the ongoing trade war between the two nations.
The port acquisition by BlackRock, which has strong U.S. government ties, is seen as a key move in countering China’s global economic influence.
BlackRock CEO Larry Fink has a longstanding relationship with Trump, having previously managed aspects of his financial portfolio. Fink was previously under consideration for the position of Treasury Secretary but decided to withdraw from the process.
His company’s takeover of the Panama Canal ports is seen as a strategic acquisition that aligns with Trump’s vision for American economic dominance, according to TP.
The acquisition comes amid other corporate victories tied to Trump’s economic policies. Apple and a SoftBank-led consortium recently announced a $600 billion investment in U.S. workforce training for AI advancements. Additionally, Honda reversed a prior decision to manufacture its next-generation Civics in Mexico, opting instead to produce them in Indiana.
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