In a bold and unexpected move, President-elect Donald Trump has reignited a decades-old debate over the Panama Canal, questioning its current toll structure and hinting at a U.S. reclamation of the strategic waterway. His remarks, delivered via Truth Social on Saturday, have sent shockwaves through political and diplomatic circles.
Trump’s sharp criticism centers on what he called “exorbitant” tolls imposed on U.S. ships and the perceived inequities in the canal’s management since its transfer to Panama under the Panama Canal Treaty signed by President Jimmy Carter in 1977.
“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, emphasizing its importance for U.S. commerce and naval operations.
Over 70% of the canal’s traffic, Trump noted, is directly linked to American ports. He argued that the United States, having built the canal at great cost and sacrifice, deserves preferential treatment over other nations.
“The fees being charged by Panama are ridiculous, especially knowing the extraordinary generosity that has been bestowed to Panama by the U.S.,” Trump said. “This complete ‘rip-off’ of our Country will immediately stop.”
The Panama Canal, completed in 1914 under President Theodore Roosevelt, is one of the greatest engineering feats in history. Constructed at a cost of $15.2 billion (adjusted for inflation), it drastically reduced shipping times by providing a direct route between the Atlantic and Pacific Oceans.
Trump highlighted the human cost of the canal’s construction, noting that “38,000 American men died from infected mosquitos in the jungles during construction.” He framed the canal as a vital U.S. asset, both economically and militarily, enabling rapid deployment of naval forces.
The Panama Canal Treaty, signed in 1977, transferred control of the canal to Panama by the end of 1999. Carter also signed a Neutrality Treaty guaranteeing equal toll rates for all nations.
Trump rejected the notion of equal treatment, arguing that the U.S., as the canal’s creator and primary user, deserves better terms. “It was likewise not given for Panama to charge the United States, its Navy, and corporations… exorbitant prices and rates of passage,” he wrote.
Currently, tolls for using the canal range from tens of thousands to over $500,000 per transit, depending on the size of the vessel and cargo. Trump described these costs as unjust and disproportionate, especially given the canal’s origins.
In his most controversial statement, Trump suggested the U.S. might reclaim the canal if Panama fails to adjust its toll policies.
“[The Panama Canal] was not given for the benefit of others, but merely as a token of cooperation with us and Panama,” he stated. “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.”
The declaration has sparked intense reactions, with some praising Trump for challenging the status quo and others warning of potential diplomatic fallout.
Trump’s comments have struck a chord with many Americans, especially those who view the original treaty as a mistake. Supporters argue that the U.S. relinquished a critical asset without sufficient safeguards, while detractors warn against reigniting tensions with Panama and undermining international agreements.
Social media lit up with reactions to Trump’s statements. Some users called for immediate action to reclaim the canal, echoing Trump’s sentiment that it remains a vital U.S. interest.
“Trump is 100% right. Carter should have never given up the Panama Canal. Let’s reclaim it,” one user tweeted.
Others cautioned that such a move could damage U.S.-Panama relations and lead to broader geopolitical consequences.
The Panama Canal remains a critical piece of global infrastructure. It handles over 14,000 vessels annually and accounts for approximately 5% of world trade. Its ability to shorten shipping routes saves millions of dollars in transportation costs and time, underscoring its strategic and economic importance.
For the United States, the canal also serves a vital military function, allowing for the rapid movement of naval forces between oceans. Trump’s remarks highlight the tension between maintaining international partnerships and asserting national interests.
As Trump prepares to take office, his comments suggest that U.S. relations with Panama and the administration of the canal may face renewed scrutiny. Whether his statements lead to policy changes, renegotiations, or diplomatic tensions remains to be seen.
For now, Trump’s bold declaration has reignited debates about the canal’s historical significance and its role in U.S. strategic interests. While his critics call his remarks inflammatory, his supporters see them as a necessary step toward addressing perceived injustices.
What’s certain is that the Panama Canal, more than a century after its completion, remains a symbol of both American ingenuity and the complexities of global diplomacy.
