Donald Trump threatens to reclaim control of Panama Canal over high fees

U.S. President-elect Donald Trump has caused a stir with his recent comments about Panama and the Panama Canal. In a post on his social media platform, Truth Social, Trump accused Panama of charging unfairly high fees for U.S. ships passing through the vital waterway. He even warned that if Panama doesn't manage the canal properly, he would demand that the United States regain control of it.

The Panama Canal is crucial for global shipping, especially for U.S. businesses, as it helps ships move quickly between the Atlantic and Pacific Oceans. This saves a lot of time and money. The canal, which the U.S. built and operated for decades, was officially handed over to Panama in 1999. However, Trump’s comments suggest he is unhappy with how Panama has been running it.

In his Truth Social post, Trump said the fees Panama charges U.S. ships are "ridiculous" and unfair. He emphasized that the United States had shown Panama generosity by helping to build and manage the canal in the past. Trump said that the U.S. had given Panama control of the canal as a sign of cooperation, not for Panama to benefit at the U.S. expense.

Trump also made it clear that he would not allow the canal to fall into "the wrong hands," referring to China. This warning highlights his concern about China’s growing influence in the region. The canal is vital for U.S. naval operations and commerce, so Trump made it clear he would not allow any foreign power, like China, to take control of it.

The Panama Canal is one of the most important waterways in the world. It allows ships traveling between the U.S. East Coast and Asia to avoid the long and dangerous route around the southern tip of South America. About 5% of global maritime traffic uses the canal, making it a key part of the world’s trade system. Countries like the U.S., China, Japan, and South Korea are the biggest users of the canal.

In fact, the Panama Canal is so important that it earned nearly $5 billion in revenue last year. These funds help Panama run and maintain the canal. Despite the revenue, Trump feels the fees for U.S. ships are too high and unfair. His post made it clear that he believes the U.S. should not be paying these high fees, especially given the support the U.S. has given Panama over the years.

Trump’s remarks were more than just a complaint about fees. He suggested that if Panama couldn’t ensure the canal is operated in a secure and efficient way, the U.S. would demand the canal be handed back to them. 

This is a rare and strong statement from a U.S. leader, threatening to take back control of land that was once under U.S. jurisdiction. He made it clear that the canal should be managed by Panama, but if that doesn't happen, he would take action.

"If Panama cannot ensure the secure, efficient, and reliable operation of the canal," Trump said, "then we will demand that the Panama Canal be returned to us, in full, and without question."

Another key point Trump raised was the growing influence of China in Panama and the region. In his post, he warned that the Panama Canal should be managed by Panama, not China. This comment reflects growing concerns in the U.S. about China’s increasing involvement in global trade and infrastructure projects.

China has been investing heavily in infrastructure worldwide, including in Latin America. Some worry that China might try to gain more influence over the Panama Canal, which is critical for U.S. shipping and military operations. Trump made it clear that the U.S. would not allow China or any other foreign power to control the canal.

The Panama Canal was built by the United States and opened in 1914. For many years, the U.S. controlled the canal and the surrounding area. In 1977, a historic agreement was signed by U.S. President Jimmy Carter and Panamanian leader Omar Torrijos. The deal set a timeline for the canal to be transferred to Panama. In 1999, control of the canal was officially handed over to Panama, marking the end of U.S. administration of the waterway.

Since then, Panama has managed the canal, but Trump’s comments suggest he believes the U.S. should have more influence or even reclaim the canal if Panama cannot manage it properly.