President-elect Donald Trump has issued a bold warning to Panama, threatening to demand the return of the Panama Canal to U.S. control if the country continues to impose what he describes as “ridiculous” and “exorbitant” fees on its usage. In a Saturday night Truth Social post, Trump declared the Panama Canal a “vital national asset” and said the U.S. would never allow it to fall into “the wrong hands,” referring to potential threats from foreign powers, particularly China.
“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,” Trump wrote. He also underscored that the U.S. would not tolerate what he sees as an unfair arrangement, emphasizing that the canal was never intended to benefit anyone other than the United States.
The Panama Canal, a crucial waterway that links the Atlantic and Pacific Oceans, has long been a point of contention for U.S. policymakers. Originally constructed under American control, it was handed over to Panama under the controversial 1977 treaty signed by then-President Jimmy Carter. Trump’s comments on the canal bring attention back to the historical debate over its transfer, a topic that remains sensitive, particularly as the U.S. remains heavily reliant on the waterway for trade.
Trump didn’t hold back in his critique of former President Jimmy Carter, whom he accused of making a “foolish decision” by agreeing to transfer the canal to Panama. He suggests that the canal should never have been relinquished, given its vital importance to U.S. trade and military interests.
“The canal was not given for the benefit of others, but merely as a token of cooperation with us and Panama. 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,” Trump wrote. This statement reflects his broader “America First” stance, calling for stronger protection of U.S. interests and assets.
The U.S. was instrumental in the construction of the canal, which was completed in 1914 after years of engineering challenges and political intrigue. The canal was crucial to U.S. maritime dominance, and the U.S. controlled the canal zone under the 1903 Hay-Bunau-Varilla Treaty, which granted the U.S. “the use, occupation, and control” of the canal’s land for its construction, maintenance, and operation.
Trump also emphasized the Panama Canal’s continued importance to U.S. trade and economic interests. Despite being formally under Panama’s control, the U.S. remains the canal’s primary user. According to Trump, 70% of all transits through the canal are to or from U.S. ports, making it a crucial component of global trade for American businesses.
In his post, Trump argued that Panama’s current fees for using the canal are unjustifiable, given the immense contributions made by the United States to the canal’s construction and its continued importance to American economic power.
Over the past decade, China has increased its economic and political footprint in the region, with investments in infrastructure projects, including ports, shipping lanes, and energy infrastructure, leading to concerns about Chinese influence over critical strategic assets like the Panama Canal.
China’s “Belt and Road Initiative,” a global infrastructure development strategy, has already led to Chinese investments in multiple key ports around the world, and Panama is no exception. In 2017, Panama and China established diplomatic relations, and some worry that Beijing’s growing influence in the region could lead to future Chinese control over strategic maritime routes, including the canal.
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Through the years the USA has taken care of others to the the detriment of our Country. Hope a trend in the betterment of the Country is on the way
some years ago i thought i saw a blurb that Panama had given a chinese firm administrative control of the canal? i thin this was around 2015?
It’s an American ditch. The clearly defined Canal Zone must be operated to OUR benefit. Panama is welcome to appropriate fees and compensation for running it, but IT IS AN AMERICAN DITCH! It is doubtless the largest employer and contributor to the Panamanian economy. Don’t get greedy. It needs to be clear to the rest of the world that such a strategic asset will be vigorously defended. To Panama, “take the money and run….”