Donald Trump, the president-elect of the United States, stated that his administration will attempt to retake control of the Panama Canal.
Jose Raul Mulino, the president of Panama, chastised him for his remarks. More regarding Trump’s remarks and the importance of the Panama Canal to the US may be found here:
What did Trump say?
Trump raised the issue of The Panama Canal at AmericaFest, an annual gathering hosted by the conservative organisation Turning Point.He stated during the event in Arizona that the United States “foolishly gave it away” and that “we’re being ripped off at the Panama Canal like we’re being ripped off everywhere else.”
After AmericaFest, Trump wrote, “Welcome to the United States Canal!” beside a photo of the US flag floating over a small body of water on his Truth Social platform.
Trump and Panamanian President Mulino exchanged jabs following Trump’s remarks. In a taped statement posted on his X account, Mulino declared, “Every square metre of the Panama Canal and the surrounding area belongs to Panama and will continue to belong [to Panama].”
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Trump reposted a news article about Mulino’s statement on his Truth Social platform, captioning it: “We’ll see about that”.On Saturday in a Truth Social post, Trump also hinted at China’s growing influence over the Panama Canal. “It was solely for Panama to manage, not China, or anyone else,” he wrote. “We would and will NEVER let it fall into the wrong hands!”
The canal is not under Chinese control. However, since 1997, two of the canal’s ports—on the Caribbean and Pacific entrances—have been run by CK Hutchison Holdings, a Hong Kong-based company. Mulino added that China has no influence over the Panama Canal in his Sunday comments on X.
The Dispute
The Panama Canal is a man-made waterway that connects the Atlantic and Pacific oceans. It was constructed on the Panama Isthmus. Every year, up to 14,000 ships pass through the canal. An estimated 40 percent of all US container traffic and 2.5 percent of all international sea trade pass through the river. The US depends on the canal to import commodities from Asia. Liquified natural gas is one among the commodities that the US exports via the waterway.
Who constructed the canal? Under the direction of then-President Theodore Roosevelt, the US constructed the canal mostly between 1904 and 1914.
Who is the owner?
The canal is owned by the Panamanian government.
When was Panama acquired?
In accordance with a 1977 contract that was signed by then-President Jimmy Carter, the United States gave Panama ownership of the canal on December 31, 1999. “We will demand that the Panama Canal be returned to the United States of America, in full, quickly, and without question if the moral and legal principles of this generous gesture of giving are not followed,”
Trump stated. The president-elect did not elaborate on how this would be accomplished.
Canal is drying up, really?
The Panama Canal was impacted by the Central American drought in 2023. The canal’s locks are operated by the adjoining artificial lake, Gatun Lake. The lake’s low water levels prompted the canal officials to raise usage fees and limit the amount of ships that may use the route.
Ship traffic in the Panama Canal dropped by 29% in the most recent fiscal year. 9,944 people passed through the canal between October 2023 and September 2024, up from 14,080 the year before.
Now, canal traffic is back to what it was before the drought. However, it is anticipated that the charge would rise the following year. Mulino stated in his statement that “the tariffs are not set on a whim” and that the higher shipping costs will contribute to the cost of the upgrades the Panamanian government has made to the canal to accommodate additional ship traffic.
Trump’s Suggestion?
In advance of the November vote, Trump’s presidential campaign was built on the non-interventionist “America First” policy. However, he has suggested “territorial expansion” multiple times since winning the presidency, with the Panama Canal being one of the territories he has recently marked as a possibility.
Trump has also hinted at Canada. On December 18, he posted on TruthSocial: “Many Canadians want Canada to become the 51st State. They would save massively on taxes and military protection. I think it is a great idea. 51st State!!!”
The president-elect may or may not have been serious. His remarks coincided with escalating hostilities between the United States and Canada. Pressure mounted on Prime Minister Justin Trudeau to step down after Canadian Finance Minister Chrystia Freeland resigned in response to Trump’s latest threat to levy tariffs on goods from their northern neighbour. Additionally, Trump has shown interest in Denmark’s independent province of Greenland.
“The United States of America feels that the ownership and control of Greenland is an absolute necessity,” Trump wrote in his Truth Social post announcing his appointment of Ken Howery as the US ambassador to Denmark on Monday.
During his first term, Trump also suggested this, but Danish authorities rejected it. The prime minister of Denmark told Danish media that Greenland is not for sale.
