In a provocative statement on his Truth Social platform, former US President Donald Trump demanded that Panama return control of the Panama Canal to the United States. Trump, who is set to begin his second term in January 2025, accused Panama of charging “ridiculous” fees for ships to transit the vital waterway connecting the Atlantic and Pacific oceans.
The Panama Canal has been under Panamanian administration since 1999, when the US handed over control following a period of joint management. The transfer was negotiated in the 1970s by President Jimmy Carter in the Torrijos-Carter Treaties, which gave Panama sovereignty over the canal while allowing the US to defend its neutrality.
Trump: Panama Canal ‘Vital’ to US Interests
Trump described the Panama Canal as a “vital national asset” for the United States, emphasizing its importance for both commerce and national security. He warned that he would not allow the strategic passage to fall into the “wrong hands,” hinting at concerns over potential Chinese influence in the region.
“The fees being charged by Panama are ridiculous, especially knowing the extraordinary generosity that has been bestowed to Panama by the US,” Trump wrote. “This complete ‘rip-off’ of our Country will immediately stop….”
Drought Disrupts Canal Operations
The Panama Canal has faced challenges in recent years due to prolonged drought conditions, which have hampered its ability to efficiently move ships between the two oceans. According to the Panama Canal Authority, ship transits decreased by a staggering 29% in the 2023-2024 fiscal year compared to the previous year.
The disruptions have contributed to supply chain pressures, as noted by National Economic Council Director Lael Brainard. The US remains the canal’s biggest customer, accounting for approximately three-quarters of the cargo passing through each year, while China ranks as the second-largest user.
Potential Impact on US-Panama Relations
Trump’s strong rhetoric regarding the Panama Canal underscores an anticipated shift in US foreign policy when he reassumes office in 2025. His comments have raised concerns about the potential strain on US-Panama relations and the wider implications for American diplomacy in Central America.
An official from Panama’s government acknowledged Trump’s statement and indicated that a formal response would be forthcoming in the days ahead. The international community will be closely watching to see how this situation unfolds and whether it marks a significant change in the long-standing arrangement governing the Panama Canal.
Looking Ahead: Canal’s Future in Question
As Donald Trump prepares to retake the White House, his tough stance on the Panama Canal has cast uncertainty over the waterway’s future management and the nature of US-Panama cooperation. With drought conditions persisting and global trade patterns evolving, the strategic importance of the canal is likely to remain a key focus for both nations in the years to come.
Trump’s demand for Panama to return the canal to US control may be seen as a negotiating tactic to secure more favorable terms for American shipping interests. However, it also risks alienating a long-time regional partner and raising suspicions about US intentions in Latin America.
As the situation develops, policymakers, trade experts, and geopolitical analysts will be paying close attention to any changes in the Panama Canal’s administration and their potential ramifications for global commerce and international relations. The coming months may prove pivotal in determining the future of this iconic waterway and the balance of power in the region.
