US President-elect Donald Trump raised the possibility of retaking control of the Panama Canal, accusing the Panamanian government of charging excessive tolls to US ships crossing this strategic waterway. The business magnate expressed his worries in a post on his Truth Social platform, citing that the treatment of the US Navy and commercial vessels had been “unfair and injudicious.”
“The fees being charged by Panama are ridiculous,” Trump declared, labeling the situation a “complete rip-off” that must “immediately stop.”
The Panama Canal, which was mostly built by the U.S. and opened in 1914, was turned over completely to Panamanian control in 1999 after a joint administrative period. Trump’s comments reflect a profound change in U.S. diplomacy, especially as he seemed to point out China’s rising influence in the region. “It was fully for Panama to operate, not China or anybody else,” he said, adding, “We would and will NEVER let it fall into the wrong hands!”
This is a rare moment in history when a U.S. president has hinted at the option of pressuring a sovereign nation over its territorial control. Trump added that the canal was not given as a gift for the good of others but rather as a friendly gesture. He threatened to ask for the return of the canal “in full, and without question,” if the principles guiding this deal are not followed.
Trump’s remarks also portend a more bellicose U.S. foreign policy. He said last month that on his first day in office he would slap tariffs on imports from Mexico and Canada, continuing them until the “invasion” of undocumented migrants and drugs stopped. He called for both countries to take action unilaterally, threatening significant repercussions if it didn’t happen.
So far, there has been no official response from Panama to Trump’s statements. The Panama Canal is central to worldwide maritime traffic, 5% of which moves through the canal, saving immeasurably on a trip from Asia to the U.S. East Coast. In October, it was reported that the Panama Canal Authority generated record revenues of almost $5 billion for the last fiscal year, underscoring its global trade importance.
