In a bombshell statement, President-elect Donald Trump has threatened to “retake control” of the Panama Canal, accusing Panama of imposing “ridiculous” fees on ships using the critical waterway. The announcement, made Saturday evening on Trump’s social media platform Truth Social, has sent shockwaves through the international community, raising concerns about a potential diplomatic crisis.
Trump’s Bold Threats
Trump’s statement accused Panama of abusing its stewardship of the canal, which the United States transferred to full Panamanian control in 1999. He characterized the canal’s current fees as an affront to the “extraordinary generosity” of the United States, which built and managed the waterway for nearly a century.
“The fees being charged by Panama are ridiculous, especially knowing the extraordinary generosity that has been bestowed to Panama by the US,” Trump wrote.
“If the principles, both moral and legal, of this magnanimous gesture of giving are not followed, then we will demand that the Panama Canal be returned to us, in full and without question.”
While Trump did not elaborate on how he plans to “reclaim” the canal, such an action would lack any legal basis under international law. The United States relinquished its control over the canal through a 1977 treaty signed by President Jimmy Carter and Panamanian leader Omar Torrijos.
A Diplomatic Firestorm
The remarks have drawn sharp rebukes from both allies and adversaries. Analysts warn that Trump’s rhetoric could further strain US-Panama relations and create ripples across global shipping and trade.
The Panama Canal, a vital passage connecting the Atlantic and Pacific Oceans, supports 2.5% of global seaborne trade and is critical for US imports and exports. For decades, it has been a symbol of US-Panama cooperation, though its return to Panamanian control was widely celebrated as a step toward sovereignty for the Central American nation.
Historical Context
Trump’s statement is not the first time he has flirted with bold territorial claims. During his first term in office (2017-2021), Trump famously expressed interest in purchasing Greenland from Denmark, a proposal dismissed as absurd by Danish authorities. In recent weeks, he has also mused about annexing Canada, though it remains unclear how serious these remarks were.
The United States’ control of the Panama Canal dates back to 1904, when it began construction on the waterway after assisting Panama in gaining independence from Colombia. While the canal was a marvel of engineering and economic importance, US administration often drew resentment in Panama, leading to the eventual treaties that restored Panamanian control.
Implications for Global Trade
The Panama Canal facilitates the transit of 14,000 ships annually and is vital for US imports from Asia and exports of commodities like liquefied natural gas. Any disruption in its operation, let alone a bid to reclaim control, could have far-reaching consequences for global trade and the US economy.
Despite Trump’s rhetoric, experts agree that the United States has no legal claim to the canal under the existing treaties. Any attempt to seize control could trigger international backlash and economic retaliation.
What’s Next?
Trump’s statement is likely to be a preview of his administration’s potentially confrontational foreign policy, marked by nationalistic rhetoric and a disregard for diplomatic norms. Whether this threat is a negotiating tactic or a genuine policy ambition remains to be seen, but it has undoubtedly set the stage for heightened tensions with Panama.
For now, the world watches with bated breath as Trump prepares to take office, with the fate of the Panama Canal—and global stability—hanging in the balance.