In a recent Truth Social post, former President Donald Trump reignited a decades-old debate by suggesting that the United States should reclaim control of the Panama Canal if the Panamanian government does not reduce the toll fees charged to U.S. ships. The statement, bold and provocative, raises questions about international agreements, economic fairness, and geopolitical consequences.
What Did Trump Say?
Trump expressed frustration with what he called “ridiculous” fees imposed on American vessels passing through the Panama Canal. He argued that the canal, which was handed over to Panama in 1999 under the terms of the 1977 Panama Canal Treaty signed by President Jimmy Carter, remains a vital asset for U.S. national security and commerce.
“The Panama Canal is considered a VITAL National Asset for the United States, due to its critical role to America’s Economy and National Security,” Trump wrote. He criticized the original treaty, stating it was a mistake to transfer control and emphasized that the U.S. Navy and American commerce are being treated unfairly. Trump went further, suggesting that if Panama does not adjust its toll policies, the U.S. should demand the canal’s return “in full, and without question.”
Also of major concern is China’s role in the control of the canal. China’s involvement in the Panama Canal represents a significant security concern due to its extensive infrastructure investments and strategic positioning at both ends of the waterway. Through initiatives tied to China’s Belt and Road Initiative (BRI), Chinese companies have secured key contracts in logistics, electricity, and construction sectors, enhancing their foothold in the region. Major projects include the $900 million acquisition of Margarita Island by the Landbridge Group, the construction of the Panama-Colón Container Port (PCCP) by state-linked firms like China Communications Construction Company (CCCC) and China Harbor Engineering Company (CHEC), and a $1.4 billion contract for the Canal’s fourth bridge.
Additionally, Hutchison Ports PPC, linked to Hong Kong-based CK Hutchison Holdings, operates major ports at Balboa and Cristobal, controlling critical Pacific and Atlantic access points. These investments not only provide China with economic leverage but also grant strategic oversight over one of the world’s most vital shipping routes, raising concerns about long-term geopolitical and security implications for both Panama and the United States.
What Is Trump Suggesting Would Be Fair?
At the heart of Trump’s grievance is the imbalance in toll fees. While Panama operates the canal as an independent entity, charging tolls that vary from a few hundred to hundreds of thousands of dollars based on vessel size and cargo, Trump implied that the United States should receive preferential rates—or at least avoid what he sees as exploitative pricing.
Trump also hinted at growing concerns over Chinese influence in Panama, suggesting that Panama’s management of the canal must remain secure and aligned with U.S. interests.
How Are Others Reacting?
Reactions to Trump’s comments have been mixed. Supporters argue that his stance highlights legitimate concerns about rising costs for American businesses and strategic vulnerabilities posed by foreign influences in such a critical trade route.
Critics, however, view Trump’s remarks as unrealistic and inflammatory. Many point out that the Panama Canal operates under international agreements and that any attempt to reclaim it would likely cause severe diplomatic and economic fallout. Some analysts argue that such rhetoric undermines trust in international treaties and partnerships.
Panamanian officials have remained largely silent, but initial responses suggest that any U.S. attempt to regain control would be met with significant resistance, both domestically in Panama and internationally.
Trump’s suggestion to reclaim the Panama Canal has sparked a heated debate about fairness, sovereignty, and the legacy of international agreements. While his comments resonate with those concerned about rising costs and geopolitical vulnerabilities, the practicalities of such a move remain in question.
ACZ Editor: This is in keeping with the Trump style of negotiations. He leads with an untenable negotiating position with the intent of bringing the opposing side to the negotiating table (but have no doubt, he will follow through with any position he takes).
But this is much more serious than it seems. The Panama Canal handles 5% of world trade totaling over $270 billion per year. China is making moves to become more involved and already have a presence in key locations that could potentially house military assets and exercise control or completely shut down the canal in an wartime situation. Trump will want to not only get better pricing but also to move China away from this control.
The Panama Canal was built by America, and controlled in the Panama Canal Zone for almost 65 years, before being given away by President Jimmy Carter in 197 7 – a gift currently producing revenues of $4 billion per year, not a cent of compensation was paid to America.
Jimmy Carter was a stupid idiot, giving away the national assets of America, apparently just to be nice. Too much of this has been done by liberal assholes who somehow get the idea that our resources are limitless.