Donald Trump has called for the Panama Canal to be returned to the United States if Panama does not manage it in a way that satisfies him, and for the Central American country to pay fees for the use of the maritime shipping route. They accused the company of charging exorbitant amounts. .
“The fees Panama charges are ridiculous, especially given the extraordinary generosity the United States has given Panama,” President Trump wrote on his Truth Social platform late Saturday, a little more than a month before he was inaugurated as the second U.S. president. I wrote. . “This complete ‘rip-off’ of our country will be stopped immediately…”
President Trump warned in an evening post that he would not let the canal fall into the “wrong hands.” And he appeared to warn of China’s potential influence on the canal, writing that the canal should not be controlled by China.
President Trump said the Panama Canal is a “vital national asset” for the United States and “critically important” to trade and national security.
The warning comes as President Trump, in an early morning thought explosion, mused that Canadians would like Canada to become America’s 51st state and lambasted Prime Minister Justin Trudeau as “Governor Trudeau.” It was issued a few days later.
President Trump’s Panama ideology highlights the expected changes in U.S. diplomacy after he takes office in January, particularly regarding security in China and Europe. On Friday, the Financial Times reported that Trump’s team told European officials it would require NATO members to increase defense spending to 5% of GDP.
But President Trump’s rhetorical threat to Panama comes 25 years after the United States handed over full control of the canal to Panama following an era of joint rule.
In 1977, President Jimmy Carter negotiated the Torrijos-Carter Treaty, which gave Panama control of the canal, and the Neutrality Treaty, which allowed the United States to maintain neutrality over the canal. The canal is currently managed by the Panama Canal Authority.
The United States completed the 51-mile canal through the Isthmus of Central America in 1914 and remains the canal’s largest customer, responsible for about three-quarters of the cargo that passes through it each year.
China is the canal’s second-largest customer, with Hong Kong-based Chinese companies controlling two of the canal’s five adjacent ports, one on each side.
But a prolonged drought has hampered the canal’s ability to move ships between the Atlantic and Pacific Oceans. National Economic Council Director Lael Brainard said last week that transportation disruptions contributed to supply chain pressures.
Ship traffic at the Panama Canal fell by 29% in the past fiscal year due to a severe drought, according to the canal authority. From October 2023 to September 2024, only 9,944 ships passed through the canal, compared to 14,080 the previous year.
In his post, President Trump suggested the canal was at risk of falling into the wrong hands and said the canal should not be controlled by China.
“It was not given for the benefit of anyone else, but simply as a sign of our cooperation with Panama,” Trump said.
“If the moral and legal principles of this generous act of donation are not upheld, we will demand the return of the Panama Canal in full and without question. Dear Panamanian authorities, please take appropriate guidance. Thank you.”
Panamanian government officials told Bloomberg late Saturday that they were aware of Trump’s comments and expected a formal response within the next few days.
Last month, Nicaraguan President Daniel Ortega announced plans for a 445km (445km) interoceanic waterway to replace the waterway in neighboring Panama.
In a proposal to Chinese investors at a regional business summit, Ortega said that “transit through Panama is becoming more complicated by the day,” and that Nicaragua’s canal project would attract Chinese and U.S. investment. He said there was a possibility, noting that the United States had previously considered building a canal in Nicaragua. It dates back to 1854.
