By In a forceful speech delivered in Arizona, President-elect Donald Trump threatened to reassert U.S. control over the Panama Canal, accusing Panama of imposing excessive and unfair fees on this critical maritime passage. Trump’s remarks, echoed both in his speech and in a prior Truth Social post, signal a confrontational stance on U.S.-Panama relations and raise broader questions about the direction of American foreign policy under his leadership.
Speaking at AmericaFest, a conservative gathering hosted by Turning Point USA, Trump criticized Panama’s management of the canal, labeling the fees charged to U.S. shipping interests as “ridiculous” and “highly unfair.”
WATCH: President Trump talks about the Panama Canal & someone in the in the crowd yells “take it back.”
Trump responds: “That’s a good idea!” pic.twitter.com/ibgmBEdvV5
— Kingsley Wilson (@KingsleyCortes) December 22, 2024
He also expressed concern about potential foreign influence, specifically citing China. While no Chinese entity directly controls or administers the canal, a subsidiary of the Hong Kong-based conglomerate CK Hutchison Holdings operates key ports at both entrances to the waterway.
CNBC writes that the United States largely built the canal and administered territory surrounding the passage for decades. But the United States and Panama signed a pair of accords in 1977 that paved the way for the canal’s return to full Panamanian control. The United States handed over control of the canal in 1999 after a period of joint administration.
The waterway, which allows up to 14,000 ships to cross per year, accounts for 2.5% of global seaborne trade and is critical to U.S. imports of autos and commercial goods by container ships from Asia, and for U.S. exports of commodities, including liquefied natural gas.
It is not clear how Trump would seek to regain control over the canal, and he would have no recourse under international law if he decided to make a play for the passage.
In two Truth Social posts, Trump slammed the “complete ‘rip-off’ of our Country” by Panama through the “ridiculous” fees being charged to the U.S. Navy and American businesses who need to pass through the canal.
“It was likewise not given for Panama to charge the United States, its Navy, and corporations, doing business within our Country, exorbitant prices and rates of passage. Our Navy and Commerce have been treated in a very unfair and injudicious way. The fees being charged by Panama are ridiculous, especially knowing the extraordinary generosity that has been bestowed to Panama by the U.S. This complete “rip-off” of our Country will immediately stop,” he said.
Trump also directed ire at former President Jimmy Carter, whose 1979 treaty initiated a transfer of control over the canal two decades later in 1999, saying he “foolishly gave it away.”
“Teddy Roosevelt was President of the United States at the time of its building, and understood the strength of Naval Power and Trade. When President Jimmy Carter foolishly gave it away, for One Dollar, during his term in Office, it was solely for Panama to manage, not China, or anyone else,” he said, according to The Washington Examiner.
Trump’s suggestion that the United States might reclaim control of the canal marks a dramatic departure from established diplomatic norms. The U.S. originally built and controlled the canal for much of the 20th century before officially transferring it to Panama in 1999 under the Torrijos-Carter Treaties, signed in 1977. These treaties ensured Panama’s sovereignty over the canal while preserving its status as an essential international trade corridor.
In response to Trump’s comments, Panamanian officials swiftly condemned the remarks. Grace Hernandez, a deputy from Panama’s opposition MOCA party, called on the Panamanian government to assertively defend national sovereignty and maintain diplomatic dignity in addressing such claims.
Trump’s rhetoric may resonate with his political base, but it also introduces significant geopolitical and legal challenges. Experts point out that international law offers no clear pathway for the U.S. to reclaim control over the canal. Analysts suggest that while Trump’s provocative statements generate media attention and energize supporters, they are unlikely to result in tangible policy changes.
This is not the first time Trump has floated bold territorial ambitions, Reuters noted. During his presidency, he famously proposed purchasing Greenland from Denmark—a suggestion that Danish officials swiftly rebuffed.
More recently, he has made offhand remarks about incorporating Canada into the United States, though those statements appeared to be more of a joke than anything serious than policy-driven.
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