Donald Trump has ordered the Pentagon to make plans for an increased U.S. military presence near the Panama Canal, making concrete his repeated threats to seize control of the crucial trade route. 

As reported by NBC News, the U.S. Southern Command is developing options for "reclaiming" the waterway. These range from partnering with Panama to mitigate China's influence, to outright seizing the canal.

Trump escalates Panama plans

Officials told NBC that the goal is to mitigate China's influence over the canal. They cautioned that a full takeover is unlikely, but it depends on the extent of Panama's cooperation.

The escalated interest in Panama is part of Trump's "America First" foreign policy. The president has repeatedly called for expanding America's influence in the Western Hemisphere - calling to take over Greenland, the Panama Canal, and even Canada - while at the same time urging America's European allies to defend themselves.

Defense secretary Pete Hegseth is visiting Panama in April after previous visits to the U.S.-Mexico border. The commander of U.S. Southern Command, Adm. Alvin Holsey, has shown draft plans to Hegseth about reclaiming the Panama Canal.

China's influence

The Trump administration has warned China could use its influence over the Panama Canal to choke off transportation in the event of a conflict with the United States.

Panama and China have both denied China has control over the canal, but China has expressed fury over U.S. "coercion" that led Panama to back out of an infrastructure project backed by Beijing, the Belt and Road initiative. That development came after Secretary of State Marco Rubio visited Panama and formally warned the country's president over China's influence.

China has also condemned as a "betrayal" the decision of a Hong Kong-based company to sell two ports in the Panama Canal to American asset manager Black Rock.

“Faced with such a major event and a matter of great justice, the relevant company should think twice … and think carefully about what position and side it should stand on,” a state-owned newspaper fumed.

Taking it back?

The United States built the Panama Canal at the dawn of the 20th century, as the U.S. was beginning to become a world power. The U.S. handed control of the canal to Panama under President Jimmy Carter.

Trump has said the U.S. was mistaken to give up the critical waterway, which provides a shortcut between the Atlantic and Pacific Oceans.

“The Panama Canal was built by Americans for Americans, not for others, but others could use it. But it was built at tremendous cost of American blood and treasure,” Trump said during his recent speech to Congress.

“It was given away by the Carter administration for $1, but that agreement has been violated very severely. We didn’t give it to China. We gave it to Panama, and we’re taking it back.”