Trump's rhetoric reflects a broader concern among U.S. officials regarding China's influence in Latin America, particularly in strategic infrastructure.
The Panama Canal's management and toll structure have become a focal point in U.S.-Panama relations, highlighting the complexities of sovereignty and international trade.
Increased tensions between the U.S. and Panama could lead to diplomatic challenges, especially if Trump follows through on his threats.
Potential negotiations may arise between the U.S. and Panama to address Trump's concerns, possibly impacting trade agreements and military cooperation.
Trump Threatens to Retake Control of the Panama Canal Amid Rising Tensions with China
President-elect Donald Trump has made headlines with his recent threats to retake control of the Panama Canal, accusing the Panamanian government of imposing excessive fees on U.S. naval and commercial traffic. In a post on his Truth Social platform, Trump expressed his outrage over what he termed 'unfair treatment' of American interests, stating, 'Our navy and our trade are being treated extremely unfairly... This total scam will stop immediately.' His comments come as tensions rise regarding China's growing influence in Panama, which has become a significant trading partner since severing ties with Taiwan in 2017.
Panama's President José Raúl Mulino swiftly rejected Trump's claims, asserting that the canal is not under the control of any foreign power, including China. 'Every square meter of the Panama Canal belongs to Panama and will remain its property,' Mulino stated, emphasizing the country's sovereignty. He called for a respectful relationship with the incoming U.S. administration, despite Trump's aggressive rhetoric.
The Strategic Importance of the Panama Canal
The Panama Canal, completed by the United States in 1914 and handed over to Panama in 1999, is a crucial maritime route that facilitates 5% of global shipping traffic. Its strategic location allows vessels to transit between the Atlantic and Pacific Oceans, significantly reducing travel time for ships coming from Asia to the U.S. East Coast. The canal is managed by the Panama Canal Authority (ACP), which has faced criticism from Trump regarding its toll rates, which were adjusted in response to a drought that impacted water levels and traffic in 2023.
Experts note that while the tolls have increased, they are determined through public hearings and are influenced by market conditions and operational costs. Paul Tourret, director of the Higher Institute of Maritime Economics, clarified that the ACP does not have the legal capacity to impose specific tariffs on American cargoes, countering Trump's claims of unfair treatment. Furthermore, he dismissed the notion of significant Chinese control over the canal, stating, 'Apart from some activities on the canal ports, China has no authority over the canal and does not control it.'
Trump's remarks signal a potential shift in U.S. foreign policy, as he aims to confront perceived threats from China and assert American interests in the region. As the situation develops, the implications for U.S.-Panama relations and the broader geopolitical landscape remain to be seen.
