Diplomatic resolutions between the United States and Panama have addressed concerns over foreign influence at the waterway without altering Panamanian sovereignty. The 1977 Torrijos-Carter Treaties transferred full control to Panama by 1999, and recent developments—including a U.S.-Panama security memorandum granting priority transit for American naval vessels, Panama’s Supreme Court annulment of Chinese-linked port concessions, and interim operations shifts to Western firms—have reduced tensions. President Trump’s earlier rhetoric on reclaiming the canal prompted these steps, yet bilateral cooperation on security and operations continues into late 2026 with no military mobilization or treaty breach evident. Trader consensus at 97.2% for “No” reflects the absence of escalation triggers. Unlikely shifts could still arise from a sudden diplomatic rupture or major regional security crisis before year-end.