President-elect Donald Trump has issued a strong ultimatum to Panama, accusing the country of imposing unfair fees on U.S. vessels using the Panama Canal. Trump declared that if the alleged overcharges persist, the United States may take steps to reclaim control of the strategically critical waterway.
Trump’s Statement
In a series of posts on Truth Social, Trump criticized Panama’s management of the canal, calling the current financial arrangements a “rip-off” of the United States. He emphasized that over 70% of the canal’s traffic is tied to U.S. ports, making the waterway an essential artery for American commerce and national security.
Trump also raised concerns about potential foreign influences in the canal’s operations, particularly China, and argued that the 1977 Torrijos-Carter Treaties, which transferred canal control to Panama, were based on the premise of exclusive Panamanian oversight without external interference.
“If Panama continues its exorbitant fees on American military and commercial vessels, the U.S. will have no choice but to demand the return of the canal. The Panama Canal was built by the U.S., and we will not allow it to be weaponized against us,” Trump said.
Strategic Importance of the Panama Canal
Completed in 1914, the Panama Canal was constructed under U.S. oversight at a great cost in lives and resources. The canal remained under U.S. control until 1999, following the terms of the Torrijos-Carter Treaties signed in 1977.
The canal facilitates the transit of approximately 5% of global trade and is a crucial conduit for maritime shipping. Its importance extends beyond commerce, as it plays a pivotal role in U.S. naval strategy, enabling the swift movement of military assets between the Atlantic and Pacific Oceans.
Growing Geopolitical Concerns
Trump’s remarks come amid heightened scrutiny of China’s growing influence in Latin America. Critics have raised concerns about China’s potential role in Panama’s economic and infrastructure projects, including those linked to the canal. Trump’s comments underscore fears that the canal could become a strategic vulnerability for the United States if managed improperly or influenced by foreign powers.
Potential Impact on U.S.-Panama Relations
While the Panamanian government has not yet responded to Trump’s statements, his remarks could signal a shift in U.S.-Panama relations under his administration. If the U.S. were to take steps to reclaim the canal, it could lead to significant diplomatic and economic consequences, not just for Panama but also for global trade networks reliant on the canal’s operations.
Historical Perspective
The Panama Canal’s history is deeply tied to American intervention and engineering. Built by the U.S. Army Corps of Engineers, the canal transformed global trade routes and bolstered U.S. economic and military dominance in the 20th century. Its transfer to Panama in 1999 marked the culmination of decades of negotiations and was seen as a milestone in Latin American sovereignty.
Looking Ahead
Trump’s comments highlight the ongoing importance of the Panama Canal in U.S. strategic calculations. Whether his administration pursues a renegotiation of terms with Panama or more drastic measures remains to be seen. For now, his remarks serve as a reminder of the enduring geopolitical significance of one of the world’s most vital waterways.